Share of Delta Corp Ltd soared 15 per cent in Wednesday’s trade amid a report the owner of casinos has temporarily put on hold a project in North Goa.
The Dhargal project, involving an investment of Rs 2,000-2,500 crore, would stay shelved until Delta Corp gains clarity on potential changes in the Centre’s GST framework, a media report quoting Chairman Jaydev Mody said.
Delta Corp shares climbed 15 per cent to hit a high of Rs 97 on BSE.
In its annual report, Delta Corp had said that it continued to hold all requisite approvals for the integrated resort project at Dhargalim. The project has been placed on hold pending further clarity on the GST framework applicable to integrated models involving gaming, hospitality, and entertainment, it had said. A decision on timelines and investments will be made once there is sufficient regulatory visibility, Delta Corp had said while filing its annual report on August 13, adding that the project remains an integral part of Delta Corp’s long-term strategic roadmap.
Adjacent to the new international airport at Dhargalim, the landmark 88-acre integrated resort and water park would feature multiple 5-star hotels, an electronic casino, theme park, retail complex, expo center, multiplex, gaming zones and family-centric attractions, the development.
There are reports that the government may introduce a 40 per cent GST rate on casinos under the proposed GST 2.0 regime, up from the current 28 per cent on all bets. The two-day GST Council meeting kicked off today.
“The 40 per cent GST contemplated will make the entire sector unviable. It will affect thousands of jobs, hurt visitation to the state, reduce revenue collections, and make redundant all the capex incurred by the industry,” said Delta Corp Chairman Jaydev Mody told Times of India
Mody, TOI said, further noted that the integrated resort, planned as the first of its kind in India, was expected to generate 10,000 direct jobs. “We have decided to temporarily shelve the project until there is clarity on all the GST issues,” he added.
The proposed resort, spread across 90 acres near the Manohar International Airport at Mopa, was originally targeted for completion by 2027. A public interest litigation (PIL) concerning the project is currently pending before the Bombay High Court at Goa.
The proposed resort, spread across 90 acres near Manohar International Airport at Mopa, was originally scheduled for completion by 2027. A PIL related to the project is pending before the Bombay High Court at Goa.