Sarkari Yojana
Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category
About Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category
Madhya Pradesh’s Tourism Department introduced the “Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category” scheme, offering a 15% capital investment subsidy on fixed capital investment up to a ceiling of ₹50,00,000/-. Applicants need to invest at least ₹2,00,00,000/- in capital expenditure and provide a minimum number of air-conditioned lettable rooms (25 for hotels or 10 for resorts). The Madhya Pradesh Tourism Board implements the scheme, and applications must reach it within one year of the date operations begin.
Scheme Overview
State Government
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category, applicants must satisfy the following conditions:
A new Standard-category Hotel or Mini Resort must…
A new Standard-category Hotel or Mini Resort must be set up.
The department must approve capital expenditure of no…
The department must approve capital expenditure of no less than ₹2,00,00,000/-.
Hotels must offer at least 25 air-conditioned lettable…
Hotels must offer at least 25 air-conditioned lettable rooms.
Resorts must offer at least 10 air-conditioned lettable…
Resorts must offer at least 10 air-conditioned lettable rooms.
New Standard hotels are required to employ residents…
New Standard hotels are required to employ residents of Madhya Pradesh for 70% of positions.
The subsidy application must be lodged within 1…
The 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 left out when the capital subsidy is calculated.
Benefits Provided
Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category provides the following benefits to eligible applicants:
A Capital Investment Subsidy equal to 15% of…
A Capital Investment Subsidy equal to 15% of the fixed Capital Investment is available.
The subsidy is capped at ₹50,00,000/-
The subsidy is capped at ₹50,00,000/-. Conditions
The unit is required to function for a…
The unit is required to function for a minimum of three years from when the subsidy is availed.
A self-declaration on the unit's continuous operation must…
A self-declaration on the unit's continuous operation must be sent in on or before the 15th of April each year.
If the unit shuts within 1 year of…
If the unit shuts within 1 year of the subsidy being received, 80% of the subsidy amount has to be returned.
If the unit shuts within 2 years of…
If the unit shuts within 2 years of the subsidy being received, 60% of the subsidy amount has to be returned.
If the unit shuts within 3 years of…
If the unit shuts within 3 years of the subsidy being received, 50% of the subsidy amount has to be returned.
Documents Required
Applicants should keep the following documents ready before starting the application:
Memorandum and Articles of Association, photocopied (applicable to…
Memorandum and Articles of Association, photocopied (applicable to a Public/Private Limited Company).
Partnership Deed plus Certificate of Registration, photocopied (applicable…
Partnership Deed plus Certificate of Registration, photocopied (applicable to a Partnership).
The Certificate of Registration (applicable to a Proprietary…
The Certificate of Registration (applicable to a Proprietary Concern).
A photocopy of the Certificate of Establishment of…
A photocopy of the Certificate of Establishment of the Firm/Company.
A Certified Khasra Map
A Certified Khasra Map.
The Site Map
The Site Map.
The registered Sale Deed or Lease Deed
The registered Sale Deed or Lease Deed.
The Project Report
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 approved by the…
A photocopy of the map approved by the local authority (Municipal Corporation, Municipality, etc.).
A photocopy of the building permission from the…
A photocopy of the building permission from the appropriate authority.
The sanctioned Floor Plan
The sanctioned Floor Plan.
A completion certificate issued by the competent authority
A completion certificate issued by the competent authority.
Total Project Cost Certificate endorsed by a Certified…
Total Project Cost Certificate endorsed by a Certified Engineer/Valuer.
Total Capital Cost Certificate endorsed by a Chartered…
Total Capital Cost Certificate endorsed by a Chartered Accountant.
Debt particulars from the relevant financial institution
Debt particulars from the relevant financial institution.
A photocopy of the first Lodging Bill
A photocopy of the first Lodging Bill.
A photocopy of the first Catering Bill
A photocopy of the first Catering Bill.
A copy of the first bill for a…
A copy of the first bill for a Service/Facility Provided.
Colour photographs of the Unit/Project from 03 different…
Colour photographs of the Unit/Project from 03 different angles (JPG Format, each within 500 KB).
A cancelled cheque of the Firm/Company
A cancelled cheque of the Firm/Company.
A photocopy of the PAN Card
A photocopy of the PAN Card.
A photocopy of photo identity proof (Aadhaar Card/Voter…
A photocopy of photo identity proof (Aadhaar Card/Voter ID/Passport, etc.).
How to Apply
Offline Application
Applicants can apply for Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category through the offline application process outlined below.
Registration Process
Open the Madhya Pradesh Government's Invest Portal and…
Open the Madhya Pradesh Government's Invest Portal and register as a "Vendor / Investor." The portal is the single window through which the corporation delivers its various services to investors and vendors.
Under basic information, pick the relevant "Type of…
Under basic information, pick the relevant "Type of Organisation" (Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, and Individual are offered) and carefully type in the "Firm/Company Name" and "Authorized Person Name" identifying the entity.
Enter a working email ID and mobile number…
Enter a working email ID and mobile number that will stay active through the whole process; the Application Number, User ID, password and other important notices are sent to the registered email ID. Confirm the email address is accurate and that messages to it are not diverted to junk or spam.
Submit the basic registration form, for which no…
Submit the basic registration form, for which no fee is charged. Once the details are accepted, a User ID and password are generated and sent to the registered mobile number so you can log in.
Logging in with that User ID and password,…
Logging in with that User ID and password, the authorized person handles the company's activities on the portal and must update the profile after the first login to complete registration prior to applying. Application Process
Through the online single-window system, obtain all mandatory…
Through the online single-window system, obtain all mandatory permissions within the stipulated time frames, then:
Complete construction so that the minimum capital expenditure of
₹2,00,00,000/-
is reached.
Launch commercial operations and keep proof of operation, for example the first lodging or catering bill.
Within one year from the start of operations,…
Within one year from the start of operations, submit the capital subsidy application online and upload all needed documents in the required formats (e.g., JPG for photos).
Once the Tourism Department/Board has checked the application…
Once the Tourism Department/Board has checked the application and documents, it processes the subsidy claim.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.