Sarkari Yojana
Grant of Financial Incentives for Hotels, Resorts, and Tourism Projects
About Grant of Financial Incentives for Hotels, Resorts, and Tourism Projects
Introduced in 2004 by the Department of Industrial Development (Tourism), Government of Puducherry, the “Grant of Financial Incentives for Hotels, Resorts, and Tourism Projects” motivates private tourism entrepreneurs by offering financial incentives to build hotels, resorts, heritage hotels and other tourism ventures. Capital grants and subsidies are available to qualifying projects such as star-classified hotels, heritage hotels, and tourism infrastructure including water theme parks, amusement parks and convention centers. Those who have put their own money into developing tourism projects can apply, and the incentive ranges from ₹2,00,000/- per room for one-star hotels up to 25% of the capital investment (capped at ₹1,00,00,000/-) for higher-category projects. Implementation is handled by the Department of Industrial Development (Tourism), Government of Puducherry.
Scheme Overview
State Government
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Grant of Financial Incentives for Hotels, Resorts, and Tourism Projects, applicants must satisfy the following conditions:
Coverage extends to star-classified hotels/resorts, heritage hotels and…
Coverage extends to star-classified hotels/resorts, heritage hotels and other tourism projects that were completed and commissioned from 2005 onwards.
Commercial operation of the project has to be…
Commercial operation of the project has to be continuous.
The applicant needs to have invested financially in…
The applicant needs to have invested financially in the property and developed the project.
Star classification or heritage classification approved by the…
Star classification or heritage classification approved by the Ministry of Tourism, Government of India, is required for the hotel/resort.
Projects that have received any other capital subsidy/incentive…
Projects that have received any other capital subsidy/incentive from the Government of Puducherry or the Government of India are excluded.
For eight years after the incentive is released,…
For eight years after the incentive is released, the project has to keep running under the same name and style.
Benefits Provided
Grant of Financial Incentives for Hotels, Resorts, and Tourism Projects provides the following benefits to eligible applicants:
Capital Grant for Star-Classified Hotels
One-star hotels
One-star hotels: ₹2,00,000/- per room, up to a ceiling of ₹30,00,000/-.
Two-star hotels
Two-star hotels: ₹3,00,000/- per room, up to a ceiling of ₹75,00,000/-.
Three-star hotels
Three-star hotels: ₹3,00,000/- per room, up to a ceiling of ₹1,00,00,000/-. Capital Grant for Heritage Hotels
₹3,00,000/- for each room, capped at ₹75,00,000/-
₹3,00,000/- for each room, capped at ₹75,00,000/-.
The building has to appear on Puducherry's current…
The building has to appear on Puducherry's current list of heritage buildings and follow architectural and conservation guidelines. Capital Subsidy for Higher-Category Projects
For hotels/resorts rated above three-star and for other…
For hotels/resorts rated above three-star and for other tourism projects such as water theme parks, amusement parks, yacht marinas, family entertainment centers, convention centers, and cruise tourism: 25% of the capital investment, limited to ₹1,00,00,000/-. Service Apartments
'Silver' category
'Silver' category: ₹1,00,000/- for each apartment, limited to ₹6,00,000/-.
'Gold' or higher category
'Gold' or higher category: ₹2,00,000/- for each apartment, limited to ₹12,00,000/-. Mode of Disbursement Where the project was financed by a loan, the incentive goes directly to the authorized/approved financial institution; where no loan was taken, it is paid directly to the applicant. Expected Time of Disbursement Disbursement is prioritised by the date of star classification/heritage classification, or by the date commercial operation began for other tourism projects.
Documents Required
Applicants should keep the following documents ready before starting the application:
A detailed project report in English on the…
A detailed project report in English on the infrastructure, covering ownership, structural designs, the financial model, detailed estimates, audited balance sheets and profit and loss statements since commencement, income tax returns and other relevant information.
The approval and occupancy certificate from the Planning…
The approval and occupancy certificate from the Planning Authority of the relevant region of the Government of Puducherry, together with the approved drawing.
Building certifications from the Departments of Fire Service,…
Building certifications from the Departments of Fire Service, Municipality/Public Works, and Electricity.
The Star Classification/Heritage Classification certificate from the Ministry…
The Star Classification/Heritage Classification certificate from the Ministry of Tourism/Department of Tourism, Government of India.
An undertaking in the given format on ₹50/-…
An undertaking in the given format on ₹50/- stamp paper.
How to Apply
Offline Application
Applicants can apply for Grant of Financial Incentives for Hotels, Resorts, and Tourism Projects through the offline application process outlined below.
Print the application form in the prescribed format
Print the application form in the prescribed format.
Complete every mandatory field and attach copies of…
Complete every mandatory field and attach copies of all required documents.
Lodge the completed, signed form and the documents…
Lodge the completed, signed form and the documents with the Department of Industrial Development (Tourism), Government of Puducherry, within any prescribed period.
Ask the receiving authority for a receipt or…
Ask the receiving authority for a receipt or acknowledgement showing the date and time of submission and a unique identification number (if applicable). Post-Application Processes
The application is examined for eligibility and the…
The application is examined for eligibility and the incentive amount by a committee made up of the Secretary to Government (Tourism), Managing Director (PTDC), Member-Secretary (PPA), Commissioner (Puducherry Municipality), a Representative of the Finance Department, an Architect (Representative of INTACH), and the Director of Tourism.
On approval, the incentive is paid directly to…
On approval, the incentive is paid directly to the authorized financial institution (where a loan exists) or to the applicant (where there is no loan), possibly in installments. An undertaking on ₹50/- stamp paper is required from the applicant, confirming that the project will keep the same name and style for eight years from the date the incentive is released.
Exclusions / Who Is Not Eligible
- Projects that have already availed capital subsidy/incentive from the Government of Puducherry or the Government of India are not eligible.
- Demolishing a heritage building and reconstructing it as a heritage hotel is not considered eligible under the scheme.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.