Spectrum Foods Ltd signs MoUs worth Rs. 220 Crores for Tourism with the Government of Rajasthan at Rising Rajasthan 2024

Spectrum Foods Limited is pleased to announce the signing of two significant Memorandums of Understanding (MoUs) with the Government of Rajasthan to establish new hospitality projects under 'Rising Rajasthan 2024, Jaipur'. Details of these landmark projects are as follows:

1. Five-Star Resort in Ajmer (Pushkar), Rajasthan

- Proposed Investment: Rs. 140.00 Crores
- Proposed Employment: 150 direct jobs
- Estimated Commencement: 2025

2. Five-Star Resort in Pali (Jawai), Rajasthan

- Proposed Investment: Rs. 80.00 Crores
- Proposed Employment: 150 direct jobs
- Estimated Commencement: 2026

The Pushkar project is in advanced construction stage and is expected to be inaugurated in the coming 6 months. Further, the state government has outlined various subsidies to support fresh hospitality projects. The expected benefits for Spectrum Foods Limited include:

- Investment Subsidy: Reimbursement of 75% of the State Goods and Services Tax (SGST) paid and deposited for 7 years, enhancing project viability.

- Exemptions: 100% exemption for 7 years on Electricity Duty, Land Tax, Stamp Duty, and Conversion Charges, significantly lowering operational expenses.

- Interest Subsidy: Up to 6% for 5 years on loans, facilitating reduced financing costs.

These incentives are designed to bolster the tourism and hospitality industry in Rajasthan, and we anticipate that they will substantially enhance the financial performance of SFL's upcoming projects. We expect cumulative subsidy benefits to be up to 65 crores over 7 years.

Shares of SPECTRUM FOODS LTD. was last trading in BSE at Rs. 27.50 as compared to the previous close of Rs. 28.16. The total number of shares traded during the day was 113026 in over 203 trades.

The stock hit an intraday high of Rs. 29.22 and intraday low of 27.28. The net turnover during the day was Rs. 3181869.00.

Source : Equity Bulls

Keywords

SPECTRUMFOODS INE547C01018 MoUs RajasthanGovernment NewHospitalityProjects RisingRajasthan2024