Sarkari Yojana
Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation
About Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation
The Department of Tourism, Government of Madhya Pradesh launched the “Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation” scheme to spur private investment in renovating, modernising and upgrading existing hotels and resorts to Deluxe or higher category. The capital subsidy is worked out under the tourism policy guidelines for the relevant category, subject to specified investment and capacity milestones. Applicants must be existing hotel or resort units investing at least ₹10,00,00,000/- or ₹25,00,00,000/-, depending on the upgradation category. The Madhya Pradesh Tourism Board implements the scheme, and applications are accepted online on the Madhya Pradesh Government’s Invest Portal.
Scheme Overview
State Government
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation, applicants must satisfy the following conditions:
Category A upgradation is open to existing Standard…
Category A upgradation is open to existing Standard Hotels or Mini Resorts.
Under Category A, the upgraded property must satisfy…
Under Category A, the upgraded property must satisfy the criteria for Deluxe Hotels (at least 50 rooms) or Resorts (at least 20 rooms).
Category A requires an investment of no less…
Category A requires an investment of no less than ₹10,00,00,000/- to qualify.
Category B upgradation is open to existing Deluxe…
Category B upgradation is open to existing Deluxe Hotels or Resorts.
Under Category B, the upgraded property must satisfy…
Under Category B, the upgraded property must satisfy the criteria for 4-star or higher category Hotels (at least 75 rooms) or Resorts (at least 25 rooms).
Category B requires an investment of no less…
Category B requires an investment of no less than ₹25,00,00,000/- to qualify.
Only capital investment made after this Policy came…
Only capital investment made after this Policy came into force can be claimed.
The application must be filed in the prescribed…
The application must be filed in the prescribed format within 1 year of the date operations begin.
Applicants claiming capital subsidy under this policy cannot…
Applicants claiming capital subsidy under this policy cannot also claim Investment Promotion Assistance.
Benefits Provided
Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation provides the following benefits to eligible applicants:
Subsidy For Upgradation To Deluxe Hotels Standard hotels (at least 50 rooms) and mini resorts (at least 20 rooms) already operating that are upgraded to Deluxe Hotels/Resorts can claim capital subsidy under the tourism policy provisions for that category. Subsidy For Upgradation To 4-Star or Higher Deluxe hotels and resorts already operating that are upgraded to 4-star or higher category Hotels (at least 75 rooms) or Resorts (at least 25 rooms) can claim capital subsidy under the tourism policy provisions for that category. Additional Subsidy Tourism projects set up in distant and ulterior areas receive a further 5% Capital Investment Subsidy. Conditions
Every unit that avails the subsidy is required…
Every unit that avails the subsidy is required to keep operating for no less than three years from the date of availing it.
These units must file a self-declaration of continuous…
These units must file a self-declaration of continuous operation each year on or before 15th of April.
If the unit is closed in breach of…
If the unit is closed in breach of this requirement, the investor must pay back the subsidy as set out below:
Unit closed within 1 year of receiving the…
Unit closed within 1 year of receiving the subsidy: 80% of the subsidy is refundable.
Unit closed within 2 years of receiving the…
Unit closed within 2 years of receiving the subsidy: 60% of the subsidy is refundable.
Unit closed within 3 years of receiving the…
Unit closed within 3 years of receiving the subsidy: 50% of the subsidy is refundable.
Documents Required
Applicants should keep the following documents ready before starting the application:
Company/Firm Documentation
A short note (Not More Than 60 Words)…
A short note (Not More Than 60 Words) on the promoters' business background
A photocopy of proof of the unit's legally…
A photocopy of proof of the unit's legally authorized person
Memorandum and Articles of Association (for a Public/Private…
Memorandum and Articles of Association (for a Public/Private Limited Company)
Partnership Deed plus Certificate of Registration (for a…
Partnership Deed plus Certificate of Registration (for a Partnership)
Proprietor's name and address/Certificate of Registration (for a…
Proprietor's name and address/Certificate of Registration (for a Proprietary Concern)
Registration particulars from the competent authority (for a…
Registration particulars from the competent authority (for a Legal Entity Other Than Above)
A photocopy of the Certificate of Establishment of…
A photocopy of the Certificate of Establishment of the Firm/Company Land and Property Documents
Certified Khasra (record of land ownership)
Certified Khasra (record of land ownership)
Site Map (record of land ownership)
Site Map (record of land ownership)
The registered Sale Deed or Lease Deed (title…
The registered Sale Deed or Lease Deed (title document) Project and Planning Documents
A photocopy of the Project Report
A photocopy of 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 issued by…
A photocopy of the building permission issued by the Appropriate Authority
A photocopy of the sanctioned floor plan
A photocopy of the sanctioned floor plan
Completion certificate from the competent authority Financial Documents
Completion certificate from the competent authority Financial Documents
Total Project Cost Certificate attested by a Certified…
Total Project Cost Certificate attested by a Certified Engineer/Valuer
Total Capital Cost Certificate attested by a CA
Total Capital Cost Certificate attested by a CA
Outstanding debt details from the relevant Financial Institution…
Outstanding debt details from the relevant Financial Institution Operational Documents
Evidence of commercial operation date (copy of the…
Evidence of commercial operation date (copy of the first Lodging Bill)
Evidence of commercial operation date (copy of the…
Evidence of commercial operation date (copy of the first Catering Bill)
Evidence of commercial operation date (copy of the…
Evidence of commercial operation date (copy of the first Bill of Service/Facility Provided)
Photos of the Unit/Project from 3 different angles…
Photos of the Unit/Project from 3 different angles (JPG Format, each within 500 KB) Banking and Identity Documents
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 identification (Aadhaar Card/ Voter…
A photocopy of photo identification (Aadhaar Card/ Voter ID/ Passport Etc.)
A photocopy of the Vender Form
A photocopy of the Vender Form
How to Apply
Offline Application
Applicants can apply for Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation through the offline application process outlined below.
Registration Process
Navigate to the Invest Portal, of the Madhya…
Navigate to the Invest Portal, of the Madhya Pradesh Government and open a new registration as a "Vendor / Investor".
Enter the basic information
Enter the basic information: select the "Type of Organisation" that fits (choices are Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, and Individual) and write in the "Firm/Company Name" and "Authorized Person Name" to establish identity.
Fill in a valid email ID and mobile…
Fill in a valid email ID and mobile number. The Application Number, User ID, password and every other important message will be delivered to the registered email ID.
Submit the basic registration form; the system then…
Submit the basic registration form; the system then generates a User ID and password and sends them directly to the registered mobile number.
The authorized person logs in with these credentials…
The authorized person logs in with these credentials to carry out company tasks, and must update the profile after first logging in to complete full registration before the scheme application. Application Process
Seek and secure the mandatory permissions through the…
Seek and secure the mandatory permissions through the online single-window system within the permitted time frames, then:
Carry out the construction/renovation so the minimum capital expenditure is fulfilled.
Get commercial operations under way and assemble proof of operation.
Make the online capital subsidy application within one…
Make the online capital subsidy application within one year of starting operations, uploading each required document in the stated format (e.g., JPG for photos).
The Tourism Department/Board reviews the application and documents…
The Tourism Department/Board reviews the application and documents and then processes the subsidy claim.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.