Sarkari Yojana
Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort
About Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort
The Department of Tourism, Government of Madhya Pradesh rolled out the “Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort” scheme, which pays a 15% capital investment subsidy on fixed capital investment, limited to ₹5,00,00,000/-. To qualify, the investor must spend at least ₹10,00,00,000/- on capital expenditure and build no fewer than 50 lettable air-conditioned rooms. Implementation is handled by the Madhya Pradesh Tourism Board, with applications received online on the state’s investment portal.
Scheme Overview
State Government
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort, applicants must satisfy the following conditions:
The new Hotel or Resort must belong to…
The new Hotel or Resort must belong to the "Deluxe/Three Star or Higher" category.
Capital expenditure of no less than ₹10,00,00,000/-, approved…
Capital expenditure of no less than ₹10,00,00,000/-, approved by the department, is mandatory.
At least 50 lettable air-conditioned rooms must be…
At least 50 lettable air-conditioned rooms must be available at the facility.
Since the policy seeks to promote private investment,…
Since the policy seeks to promote private investment, the applicant must be a private investor.
The capital subsidy claim has to be filed…
The capital subsidy claim has to be filed within 1 year of the date operations commence.
Units that have claimed Investment Promotion Assistance for…
Units that have claimed Investment Promotion Assistance for the same unit are barred from capital subsidy, so no such claim should have been made.
Benefits Provided
Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort provides the following benefits to eligible applicants:
A Capital Investment Subsidy of 15% on the…
A Capital Investment Subsidy of 15% on the Fixed Capital Investment is admissible.
The subsidy is capped at ₹5,00,00,000/-
The subsidy is capped at ₹5,00,00,000/-. Disbursal Conditions
Once the subsidy is availed, the unit must…
Once the subsidy is availed, the unit must remain operational for a minimum of three years.
A self-declaration about continuous operation must be furnished…
A self-declaration about continuous operation must be furnished every year by the 15th of April.
Closure within 1 year of receiving the subsidy…
Closure within 1 year of receiving the subsidy triggers a refund of 80% of the amount.
Closure within 2 years of receiving the subsidy…
Closure within 2 years of receiving the subsidy triggers a refund of 60% of the amount.
Closure within 3 years of receiving the subsidy…
Closure within 3 years of receiving the subsidy triggers a refund of 50% of the amount.
Investment made prior to 3 years from the…
Investment made prior to 3 years from the date operations began will be accepted when computing the capital subsidy.
Documents Required
Applicants should keep the following documents ready before starting the application:
The Project Report
The Project Report.
Land record copies (ownership papers like the Certified…
Land record copies (ownership papers like the Certified Khasra and Site Map).
A copy of the registered Sale Deed or…
A copy of the registered Sale Deed or Lease Deed as evidence of title.
A copy of the Certificate of Establishment of…
A copy of the Certificate of Establishment of the Firm/Company.
The Memorandum and Articles of Association (in the…
The Memorandum and Articles of Association (in the case of a Public/Private Limited Company).
The Partnership Deed with Certificate of Registration (in…
The Partnership Deed with Certificate of Registration (in the case of a Partnership Firm).
An HRACC certificate (If Applicable)
An HRACC certificate (If Applicable).
A copy of the certificate from Town and…
A copy of the certificate from Town and Country Planning (TNCP).
A copy of the map cleared by the…
A copy of the map cleared by the local authority (Municipal Corporation, Municipality Etc.).
A copy of the building permission from the…
A copy of the building permission from the appropriate authority.
A copy of the sanctioned floor plan
A copy of the sanctioned floor plan.
The completion certificate from the competent authority
The completion certificate from the competent authority.
Total Project Cost Certificate authenticated by a Certified…
Total Project Cost Certificate authenticated by a Certified Engineer/Valuer.
Total Capital Cost Certificate authenticated by a CA
Total Capital Cost Certificate authenticated by a CA.
Borrowing details from the concerned financial institution
Borrowing details from the concerned financial institution.
Evidence of when commercial operation began (photocopy of…
Evidence of when commercial operation began (photocopy of the first Lodging Bill, Catering Bill, or Service Bill).
Pictures of the Unit/Project from 3 different angles…
Pictures of the Unit/Project from 3 different angles (JPG Format, max 500 KB each).
A cancelled cheque issued by the Firm/Company
A cancelled cheque issued by the Firm/Company.
A copy of the PAN Card
A copy of the PAN Card.
A copy of photo identification (Aadhaar Card/ Voter…
A copy of photo identification (Aadhaar Card/ Voter ID/ Passport Etc.).
A copy of the Vender Form
A copy of the Vender Form.
A copy of proof of the unit's legally…
A copy of proof of the unit's legally authorized person.
How to Apply
Offline Application
Applicants can apply for Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort through the offline application process outlined below.
Registration Process
Register as a "Vendor / Investor." on the…
Register as a "Vendor / Investor." on the Madhya Pradesh Government's Invest Portal, the single point of access for the range of services the corporation provides to investors and vendors.
In the basic information form, choose the applicable…
In the basic information form, choose the applicable "Type of Organisation" from Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, and Individual, and correctly enter the "Firm/Company Name" and the "Authorized Person Name" to identify the entity.
Give a valid email ID and mobile number…
Give a valid email ID and mobile number that you will keep active throughout, since the Application Number, User ID, password and every other important message go to this registered email ID. Check that the email address is right and that mail sent there is not filtered into junk or spam.
Complete and submit the basic registration form; there…
Complete and submit the basic registration form; there is no fee for this basic registration. When the details are submitted successfully, the system issues a User ID and password to the registered mobile number for logging in.
Using the User ID and password from the…
Using the User ID and password from the registered mobile number, the authorized person logs in to process company activities, updating the profile after the first login so registration is complete before the scheme application. Application Process
Get all mandatory permissions through the online single-window…
Get all mandatory permissions through the online single-window system within the stipulated time frames, and then:
Build the project so that the minimum capital expenditure of ₹3,00,00,000/- is satisfied.
Start commercial operations and gather operational proof, such as the first lodging or catering bill.
File the capital subsidy application online within one…
File the capital subsidy application online within one year of operations starting, uploading all documents in the specified formats (e.g., JPG for photos).
The Tourism Department/Board verifies what has been submitted…
The Tourism Department/Board verifies what has been submitted and processes the subsidy claim.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.