IHCL managing director Puneet Chhatwal has urged West Bengal to offer fiscal incentives to the hotel sector, The Telegraph reported on 1 November 2026. He said Bengal has given tourism industry status, but execution of that status matters. He pointed out that Madhya Pradesh and Chhattisgarh back hotel projects with a 30 to 35% capital subsidy. He also said land on long-term lease would let hotel projects move much faster. He spoke in Kolkata on 31 October, at an event with the Ambuja Neotia group.
A capital subsidy is a grant that covers part of the cost of building a project. Chhatwal’s call comes less than a week before the Suvendu Adhikari government is due to release its industry policy, according to The Telegraph. The paper reports that the earlier policy had set out ₹5,000 crore of incentives linked to job creation. Chhatwal also cited Uttar Pradesh as a state that has grown into a tourism hub. IHCL and Ambuja Neotia plan to grow their Bengal partnership from 11 to 20 hotels.
Our view is that Bengal will add some hotel incentives to its new policy, because the largest hotel company has asked in public with a live pipeline. Hotel developers in Bengal gain if land leases and subsidies arrive, while states that already offer them lose part of their edge in attracting projects. Coverage has not said whether hotels will get the same job-linked incentives as factories, which matters because hotels hire many people per rupee invested. States such as Madhya Pradesh and Uttar Pradesh drew new hotel signings after they offered subsidies and land. We expect the new Bengal industry policy to name tourism or hospitality as an eligible sector, and at least one more major chain to announce a Bengal hotel within six months. Confidence: medium.
This is important for our readers because state incentives can change the cost of building a hotel by a third. If you plan a project in Bengal, read the industry policy as soon as it is released this week. If you operate in Madhya Pradesh or Chhattisgarh, check whether your project qualifies for the capital subsidy. Talk to your adviser before you commit to land.
Sources:
The Telegraph, 1 Nov 2026
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