Sarkari Yojana
Capital Subsidy for Heritage Hotel under Proprietorship
About Capital Subsidy for Heritage Hotel under Proprietorship
Launched by the Tourism Department, Government of Madhya Pradesh, the “Capital Subsidy for Heritage Hotel under Proprietorship” scheme financially supports proprietors so that more heritage hotels are set up through private investment. It grants a capital subsidy of 15% on fixed capital investment, capped at ₹2,00,00,000/-, to proprietorship firms building a Heritage Hotel with capital expenditure of at least ₹3,00,00,000/-. The Madhya Pradesh Tourism Board implements it, and applications are accepted online on the state investment portal or by the designated department within one year of the operation start date.
Scheme Overview
State Government
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Capital Subsidy for Heritage Hotel under Proprietorship, applicants must satisfy the following conditions:
Only a Proprietorship may apply
Only a Proprietorship may apply.
The Tourism Project being set up must be…
The Tourism Project being set up must be a "Heritage Hotel".
Department-approved capital expenditure must be at least ₹3,00,00,000/-
Department-approved capital expenditure must be at least ₹3,00,00,000/-.
The project must have been set up and…
The project must have been set up and made operational while the policy was in force.
The application has to be made within 1…
The application has to be made within 1 year of the date operations started.
Investment claimed for subsidy must not predate the…
Investment claimed for subsidy must not predate the start of operations by more than 3 years (or 5 years where the project was carried out in one go).
Investment Promotion Assistance cannot be claimed alongside this…
Investment Promotion Assistance cannot be claimed alongside this capital subsidy.
Benefits Provided
Capital Subsidy for Heritage Hotel under Proprietorship provides the following benefits to eligible applicants:
A subsidy equal to 15% of the Fixed…
A subsidy equal to 15% of the Fixed Capital Investment is paid to the beneficiary.
At most ₹2,00,00,000/- can be received as subsidy
At most ₹2,00,00,000/- can be received as subsidy. Benefit Disbursal Conditions
Setting up and operationalisation of the unit must…
Setting up and operationalisation of the unit must happen during the policy's operative tenure.
The unit must keep running without a break…
The unit must keep running without a break for three years or more after the subsidy is availed.
Every year, by the 15th of April, the…
Every year, by the 15th of April, the beneficiary has to file a self-declaration of the unit's continuous operation.
A closure within 1 year of receiving the…
A closure within 1 year of receiving the subsidy means 80% of it must be returned.
A closure within 2 years of receiving the…
A closure within 2 years of receiving the subsidy means 60% of it must be returned.
A closure within 3 years of receiving the…
A closure within 3 years of receiving the subsidy means 50% of it must be returned.
Documents Required
Applicants should keep the following documents ready before starting the application:
Identity and Legal Documents
A photocopy of proof identifying the unit's legally…
A photocopy of proof identifying the unit's legally authorized person.
The proprietor's name and address or the certificate…
The proprietor's name and address or the certificate of registration (for a proprietary concern).
A photocopy of the PAN card
A photocopy of the PAN card.
A photocopy of any photo identity proof (Aadhaar…
A photocopy of any photo identity proof (Aadhaar Card/ Voter Id/ Passport etc.).
A cancelled cheque of the firm/company
A cancelled cheque of the firm/company.
A photocopy of the vender form
A photocopy of the vender form. Land and Location Documents
Copies of land records, including ownership papers (Certified…
Copies of land records, including ownership papers (Certified Khasra).
The site plan/map
The site plan/map.
The title copy of the registered sale deed…
The title copy of the registered sale deed or lease deed.
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 approved floor plan
A photocopy of the approved floor plan.
A photocopy of the building permission from the…
A photocopy of the building permission from the appropriate authority. Project and Financial Documents
A photocopy of the project report
A photocopy of the project report.
A total project cost certificate verified by a…
A total project cost certificate verified by a certified Engineer/Valuer.
A total capital cost certificate verified by a…
A total capital cost certificate verified by a Chartered Accountant (CA).
Loan/debt details from the concerned financial institution
Loan/debt details from the concerned financial institution.
An HRACC certificate (if applicable)
An HRACC certificate (if applicable).
A completion certificate issued by the competent authority
A completion certificate issued by the competent authority. Proof of Operation
Evidence of the commercial operation start date (photocopy…
Evidence of the commercial operation start date (photocopy of the first Lodging Bill, Catering Bill, or first bill for a service/facility provided).
Any other legally valid evidence establishing the commercial…
Any other legally valid evidence establishing the commercial operation date.
Photos of the Unit/Project taken from 3 different…
Photos of the Unit/Project taken from 3 different angles (JPG Format, no more than 500 KB each).
How to Apply
Offline Application
Applicants can apply for Capital Subsidy for Heritage Hotel under Proprietorship through the offline application process outlined below.
Registration Process
Begin registration as a "Vendor / Investor." on…
Begin registration as a "Vendor / Investor." on the Madhya Pradesh Government's Invest Portal, which is the common interface investors and vendors use to access the corporation's services.
Choose the right "Type of Organisation" in the…
Choose the right "Type of Organisation" in the basic information section from the listed options (Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, and Individual), and fill in the "Firm/Company Name" and the "Authorized Person Name" accurately to identify the entity.
Enter a valid email ID and mobile number…
Enter a valid email ID and mobile number and keep them active until the process ends, since the Application Number, User ID, password, and all significant communication are sent to the registered email ID. Make sure the email address is typed correctly and that these emails are not being routed to junk or spam.
Submit the basic registration form (this basic registration…
Submit the basic registration form (this basic registration step is free). After a successful submission, a User ID and password are generated and sent to the registered mobile number for login.
The authorized person logs in with the User…
The authorized person logs in with the User ID and password received on the registered mobile number to process company activities, completing full registration by updating the profile after the first login and before applying. Application Process
Obtain the mandatory permissions through the online single-window…
Obtain the mandatory permissions through the online single-window system within the stipulated time frames, then:
Finish building, ensuring the minimum capital expenditure of ₹3,00,00,000/- is reached.
Commence commercial operations and keep evidence of operation, for instance the first lodging or catering bill.
Within one year of the date operations begin,…
Within one year of the date operations begin, submit the capital subsidy application online, uploading all documents in the specified formats (e.g., JPG for photos).
The Tourism Department/Board checks the application and documents,…
The Tourism Department/Board checks the application and documents, after which the subsidy claim is processed.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.