Sarkari Yojana
Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease
About Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease
Through the “Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease” scheme, the Tourism Department, Government of Madhya Pradesh seeks private investment to conserve government-owned heritage properties and bring them into use as heritage hotels. The subsidy equals 15% of fixed capital investment, subject to a ceiling of ₹5,00,00,000/-, and the department-approved project must involve capital expenditure of at least ₹10,00,00,000/-. The Madhya Pradesh Tourism Board handles implementation, and applications are submitted online on the State Government’s Invest Portal.
Scheme Overview
State Government
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease, applicants must satisfy the following conditions:
The project being set up must be a…
The project being set up must be a Heritage Hotel.
The Heritage Assets must have been taken on…
The Heritage Assets must have been taken on lease from the Tourism Department.
Department-approved capital expenditure must be at least ₹10,00,00,000/-
Department-approved capital expenditure must be at least ₹10,00,00,000/-.
Applicants must be private investors, such as a…
Applicants must be private investors, such as a proprietary concern, partnership firm, company, or other legal entity.
The heritage asset must have been won through…
The heritage asset must have been won through the open bidding process run by the Empowered Committee.
The whole project must be executed and run…
The whole project must be executed and run in one go; otherwise, capital expenditure incurred up to a maximum of 05 years before the unit commences is counted when calculating the capital grant.
The Tourism Department must certify the project as…
The Tourism Department must certify the project as a heritage hotel under its framed rules and procedures.
Benefits Provided
Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease provides the following benefits to eligible applicants:
A capital subsidy of 15% of the Fixed…
A capital subsidy of 15% of the Fixed Capital Investment in the project is provided.
The capital subsidy cannot exceed ₹5,00,00,000/-
The capital subsidy cannot exceed ₹5,00,00,000/-.
Entrepreneurs from the SC/ST category who set up…
Entrepreneurs from the SC/ST category who set up the tourism project with 100% ownership get an extra 5% capital investment subsidy.
Projects located in distant and ulterior areas qualify…
Projects located in distant and ulterior areas qualify for a further 5% Capital Investment Subsidy. Disbursal Conditions
After availing the subsidy, the unit has to…
After availing the subsidy, the unit has to keep operating without interruption for three years or more.
Each year, on or before the 15th of…
Each year, on or before the 15th of April, the unit must lodge a self-declaration confirming continuous operation.
Closing down within 1 year of getting the…
Closing down within 1 year of getting the subsidy means refunding 80% of the amount.
Closing down within 2 years of getting the…
Closing down within 2 years of getting the subsidy means refunding 60% of the amount.
Closing down within 3 years of getting the…
Closing down within 3 years of getting the subsidy means refunding 50% of the amount.
Units that claim Investment Promotion Assistance (for Large/Mega…
Units that claim Investment Promotion Assistance (for Large/Mega projects) are not eligible for capital subsidy under this scheme.
Where a unit qualifies for a grant/subsidy under…
Where a unit qualifies for a grant/subsidy under several categories, it must opt for just one.
Documents Required
Applicants should keep the following documents ready before starting the application:
Project and Entity Details
Project and Entity Details
◦ The Memorandum and Articles of Association (where…
◦ The Memorandum and Articles of Association (where the applicant is a Public/Private Limited Company).
◦ The Partnership Deed along with its Certificate…
◦ The Partnership Deed along with its Certificate of Registration (where the applicant is a Partnership Firm).
◦ The Certificate of Registration (where the applicant…
◦ The Certificate of Registration (where the applicant is a Proprietary Concern).
◦ A short write-up on the business background…
◦ A short write-up on the business background of the Promoters/Owners/Company.
◦ The firm's/company's PAN Card
◦ The firm's/company's PAN Card.
◦ Photo identity proof of the authorized person…
◦ Photo identity proof of the authorized person (Aadhaar Card/Voter ID/Passport).
◦ A cancelled cheque of the firm/company
◦ A cancelled cheque of the firm/company.
◦ A Resolution or Authority Letter empowering the…
◦ A Resolution or Authority Letter empowering the legally authorized person who signs the application.
Land and Location Details
Land and Location Details
◦ The Lease Deed signed with the Tourism…
◦ The Lease Deed signed with the Tourism Department/Board.
◦ The Certified Khasra Map together with land…
◦ The Certified Khasra Map together with land ownership records.
◦ A Site Map
◦ A Site Map.
Project Approvals and Technical Details
Project Approvals and Technical Details
◦ The Detailed Project Report
◦ The Detailed Project Report.
◦ A copy of building permission issued by…
◦ A copy of building permission issued by the appropriate authority.
◦ A copy of the Map cleared by…
◦ A copy of the Map cleared by the relevant authority (Town and Country Planning or Local Authority).
◦ The sanctioned floor plan
◦ The sanctioned floor plan.
◦ An HRACC certificate (if applicable)
◦ An HRACC certificate (if applicable).
◦ A Fire NoC issued by Urban Bodies
◦ A Fire NoC issued by Urban Bodies.
◦ Consent/Permissions granted by the Pollution Control Board
◦ Consent/Permissions granted by the Pollution Control Board.
Financial and Expenditure Proofs
Financial and Expenditure Proofs
◦ A Total Capital Cost certificate verified by…
◦ A Total Capital Cost certificate verified by a Certified Engineer/Valuer.
◦ A Total Project Cost certificate verified by…
◦ A Total Project Cost certificate verified by a Certified Chartered Accountant (CA).
◦ Particulars of financing arrangements, including bank/financial institution…
◦ Particulars of financing arrangements, including bank/financial institution loans.
◦ Evidence of the commercial operation start date…
◦ Evidence of the commercial operation start date (copy of the first lodging bill, catering bill, or service bill).
Other Documents
Other Documents
◦ Colour pictures of the Unit/Project from 03…
◦ Colour pictures of the Unit/Project from 03 different angles.
◦ An Affidavit/Declaration affirming that the information is…
◦ An Affidavit/Declaration affirming that the information is correct and that no other subsidies have been availed.
How to Apply
Offline Application
Applicants can apply for Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease through the offline application process outlined below.
Registration Process
Start registration as a "Vendor / Investor." on…
Start registration as a "Vendor / Investor." on the Madhya Pradesh Government's Invest Portal, which acts as the one-stop interface for the various services the corporation offers investors and vendors.
Complete the basic information section by choosing the…
Complete the basic information section by choosing the correct "Type of Organisation" out of Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, and Individual, and enter the "Firm/Company Name" and the "Authorized Person Name" precisely so the entity is identified.
Provide a valid email ID and mobile number…
Provide a valid email ID and mobile number and keep both active for the full process, because the Application Number, User ID, password, and all other key messages go to the registered email ID. Double-check the email address and make sure mails to it do not land in the junk or spam folder.
Submit the basic registration form; this basic registration…
Submit the basic registration form; this basic registration is free of charge. After a successful submission, the system creates a User ID and password and sends them to the registered mobile number for logging in.
The authorized person signs in with the User…
The authorized person signs in with the User ID and password received on the registered mobile number to manage the company's activities, and must update the profile after the first sign-in to finish registration before applying for the scheme. Application Process
Obtain the mandatory permissions via the online single-window…
Obtain the mandatory permissions via the online single-window system within the stipulated time frames, and after that:
Finish construction, making sure the minimum capital expenditure of ₹3,00,00,000/- is achieved.
Start commercial operations and collect proof of operation, like the first lodging or catering bill.
Submit the capital subsidy application online no later…
Submit the capital subsidy application online no later than one year after operations commence, uploading all needed documents in the required file formats (e.g., JPG for photos).
The Tourism Department/Board examines the application and documents…
The Tourism Department/Board examines the application and documents and processes the subsidy claim.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.