He said the hospitals would be set up specially in tier II and tier III towns with an aim to serve the rural hinterland. “Certain specified urban agglomerations will not be covered,” Mr Chidambaram added. This window will be open for the period April 1, 2008 to March 31, 2013, during which the hospital must commence operations.
Benefit for hotels
Similarly, a five-year holiday from income tax has been announced for two, three and four star hotels established in specific districts, which have UNESCO-declared ‘World Heritage Sites’. The hotel should be constructed and start functioning during April 1, 2008 to March 31, 2013.

“The Union Budget 2009 has fallen short of our expectations. While the five year tax exemption on new hotel properties opening in districts that house UNESCO World Heritage Sites is welcomed, we were hoping that a similar exemption would be granted across all tier II and tier III cities. Similarly the demand for infrastructure status for the industry remains unmet. Hampi in Karnataka is  on our radar for the near future and the tax exemption surely makes the proposition attractive than before,” said Chender Baljee, CMD, Royal Orchid Hotels Ltd.