Sarkari Yojana
Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel
About Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel
The Madhya Pradesh Tourism Department, Government of Madhya Pradesh introduced the “Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel” scheme to spur private investment in enlarging existing tourist accommodation in the state. It offers a 15% capital investment subsidy on fixed capital investment, capped at ₹5,00,00,000/-. To qualify, an established unit must increase its staying capacity by at least 50%. The Madhya Pradesh Tourism Board implements the scheme, and applications are taken online on the Madhya Pradesh Government’s Invest Portal.
Scheme Overview
State Government
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel, applicants must satisfy the following conditions:
The applicant must already run an established Star,…
The applicant must already run an established Star, Deluxe, or Standard Hotel, Resort, or Heritage Hotel.
Department-approved capital expenditure of at least ₹1,00,00,000/- is…
Department-approved capital expenditure of at least ₹1,00,00,000/- is required.
The expansion must raise staying capacity by no…
The expansion must raise staying capacity by no less than 50% for the subsidy to apply.
To claim the exemptions/facilities, heritage hotels/tourism projects need…
To claim the exemptions/facilities, heritage hotels/tourism projects need the relevant certification from the Tourism Department.
The capital subsidy application must be lodged within…
The capital subsidy application must be lodged within 1 year of the operation start date.
Investment made prior to 3 years from the…
Investment made prior to 3 years from the date operations began is excluded from the capital subsidy calculation.
Benefits Provided
Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel provides the following benefits to eligible applicants:
Beneficiaries get a Capital Investment Subsidy amounting to…
Beneficiaries get a Capital Investment Subsidy amounting to 15% of their Fixed Capital Investment.
₹5,00,00,000/- is the highest subsidy payable
₹5,00,00,000/- is the highest subsidy payable.
It is available for expanding established Star, Deluxe,…
It is available for expanding established Star, Deluxe, Standard Hotels, Resorts, or Heritage Hotels. Conditions
For no less than three years after availing…
For no less than three years after availing the subsidy, the unit must run without interruption and file a self-declaration of continuous operation each year on or before the 15th of April.
Where the unit shuts down within 1 year…
Where the unit shuts down within 1 year of getting the subsidy, 80% of the subsidy amount must be paid back.
Where the unit shuts down within 2 years…
Where the unit shuts down within 2 years of getting the subsidy, 60% of the subsidy amount must be paid back.
Where the unit shuts down within 3 years…
Where the unit shuts down within 3 years of getting the subsidy, 50% of the subsidy amount must be paid back.
Documents Required
Applicants should keep the following documents ready before starting the application:
Legal Entity Documents
A photocopy of proof naming the unit's legally…
A photocopy of proof naming the unit's legally authorized person
Photocopies of the Memorandum and Articles of Association…
Photocopies of the Memorandum and Articles of Association (for a Public/Private Limited Company)
A photocopy of the Partnership Deed and its…
A photocopy of the Partnership Deed and its Certificate of Registration (for a Partnership)
The proprietor's name and address/Certificate of Registration (for…
The proprietor's name and address/Certificate of Registration (for a Proprietary Concern)
Registration details issued by the competent authority (for…
Registration details issued by the competent authority (for any Legal Entity Other Than Above)
A photocopy of the firm's/company's Certificate of Establishment…
A photocopy of the firm's/company's Certificate of Establishment Property and Land Documents
A Certified Khasra (record of land ownership)
A Certified Khasra (record of land ownership)
A site plan/map
A site plan/map
A photocopy of the registered Sale Deed or…
A photocopy of the registered Sale Deed or Lease Deed (proof of title) Project and Planning Documents
A photocopy of the Project Report
A photocopy of the Project Report
HRACC certificate (if Applicable)
HRACC certificate (if Applicable)
A photocopy of the Town and Country Planning…
A photocopy of the Town and Country Planning (TNCP) certificate
A photocopy of the map sanctioned by the…
A photocopy of the map sanctioned by the local authority (Municipal Corporation, Municipality etc.)
A photocopy of building permission from the appropriate…
A photocopy of building permission from the appropriate authority
A photocopy of the sanctioned floor plan
A photocopy of the sanctioned floor plan
Completion certificate issued by the competent authority Financial…
Completion certificate issued by the competent authority Financial Documents
Total project cost certificate attested by a certified…
Total project cost certificate attested by a certified Engineer/Valuer
Total capital cost certificate attested by a CA
Total capital cost certificate attested by a CA
Details of outstanding debt from the relevant financial…
Details of outstanding debt from the relevant financial institution Operational Documents
Evidence of the commercial operation start date (photocopy…
Evidence of the commercial operation start date (photocopy of the first Lodging Bill, Catering Bill, or Bill of Service/Facility Provided)
Photos taken from 3 Different Angles (JPG Format,…
Photos taken from 3 Different Angles (JPG Format, under 500 KB each) Banking and Identity Documents
The Firm's/Company's cancelled cheque
The Firm's/Company's cancelled cheque
A photocopy of the PAN Card
A photocopy of the PAN Card
A photocopy of photo ID (Aadhaar Card/Voter ID/Passport…
A photocopy of photo ID (Aadhaar Card/Voter ID/Passport etc.)
A photocopy of the Vender Form
A photocopy of the Vender Form
How to Apply
Offline Application
Applicants can apply for Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel through the offline application process outlined below.
Registration Process
Register on the Madhya Pradesh Government's Invest Portal,…
Register on the Madhya Pradesh Government's Invest Portal, by choosing the "Vendor / Investor" option.
Under basic information, select your "Type of Organisation"…
Under basic information, select your "Type of Organisation" (the options are Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, and Individual) and record the "Firm/Company Name" and "Authorized Person Name" to establish who the entity is.
Supply a valid email ID and mobile number
Supply a valid email ID and mobile number. The registered email ID will receive the Application Number, User ID, password, and all other important updates.
Once the basic registration form is submitted, the…
Once the basic registration form is submitted, the system issues a User ID and password and forwards them to the registered mobile number.
The authorized person signs in with the User…
The authorized person signs in with the User ID and password sent to the registered mobile number to carry out the company's activities, and updates the profile after the first login so that full registration is complete before applying for the scheme. Application Process
Secure every mandatory permission through the online single-window…
Secure every mandatory permission through the online single-window system within the stipulated deadlines, and then:
Finish the construction work so that the minimum capital expenditure is fulfilled.
Launch commercial operations and assemble proof of operation.
Submit the online capital subsidy application within one…
Submit the online capital subsidy application within one year from the start of operations, uploading all necessary documents in the correct formats (e.g., JPG for photos).
After the Tourism Department/Board has verified the application…
After the Tourism Department/Board has verified the application and documents, it processes the subsidy claim.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.