Scheme of Financial Assistance to IHMs/FCIs/IITTM/ICI/NCHMCT/PSUs

Applications must come from a Society constituted by…

Applications must come from a Society constituted by the Central Government, a State Government, or a Union Territory Administration.

That Society is required to be registered under…

That Society is required to be registered under the Societies Registration Act, 1860.

An autonomous society set up by the Central…

An autonomous society set up by the Central Government — for instance, the Indian Institute of Tourism & Travel Management (IITTM), the National Council for Hotel Management & Catering Technology (NCHMCT), or the Indian Culinary Institute (ICI) — is also eligible to apply. A. Criteria for Setting up a New State Institute of Hotel Management (SIHM)

The IHM Society being formed must be duly…

The IHM Society being formed must be duly registered under the Societies Registration Act, 1860, by the Central Government, the State Government, or the Union Territory Administration concerned.

Management of the proposed Institute of Hotel Management…

Management of the proposed Institute of Hotel Management must rest solely with the Society constituted by the State Government or Union Territory Administration.

The concerned State Government or Union Territory Administration…

The concerned State Government or Union Territory Administration must have handed over developed, encumbrance-free land for the project.

This transferred plot must span at least five…

This transferred plot must span at least five acres.

The State Government/Union Territory Administration must also commit…

The State Government/Union Territory Administration must also commit to supplying basic utilities such as electricity, water, and sewerage.

Documentary proof of land transfer in the IHM…

Documentary proof of land transfer in the IHM Society's name must accompany the application.

Where an outright transfer to the Society cannot…

Where an outright transfer to the Society cannot be completed, the land must at minimum be clearly earmarked for the IHM and held by the State Government/Union Territory Administration in the name of its Tourism Department.

Any difficulty in effecting the transfer must be…

Any difficulty in effecting the transfer must be documented in writing and found acceptable to the Central Government. Preference, Priority, Reservation, Relaxation

For an SIHM proposed in hilly terrain or…

For an SIHM proposed in hilly terrain or in one of the six classified large Urban Agglomeration cities (Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, and Delhi), the developed land requirement is relaxed to a minimum of two acres.

Where this reduced land-size dispensation is availed of,…

Where this reduced land-size dispensation is availed of, the academic and equipment infrastructure norms — including covered-area requirements — must still be strictly followed.

Site selection gives priority to states that currently…

Site selection gives priority to states that currently lack sufficient tourism and hospitality education institutions. B. Criteria for Setting up a SIHM in an Existing Building

The SIHM may instead be housed in an…

The SIHM may instead be housed in an existing building made available by the State Government/Union Territory Administration.

That building must be suitable for accommodating an…

That building must be suitable for accommodating an IHM.

All other general conditions applicable to setting up…

All other general conditions applicable to setting up a new IHM, as laid out in Section A above, must also be met. C. Criteria for Upgradation of Existing Food Craft Institute (FCI) into SIHM

The upgradation proposal must be well justified and…

The upgradation proposal must be well justified and assessed as feasible by the Central Government.

The existing FCI Society has to be dissolved…

The existing FCI Society has to be dissolved by the State Government.

In its place, the State Government must set…

In its place, the State Government must set up a new Society in the SIHM's name, registered under the Societies Registration Act, 1860.

Central Financial Assistance for this upgradation remains subject…

Central Financial Assistance for this upgradation remains subject to the other conditions applicable to setting up a new IHM under Section A. D. Criteria for Setting up a New Food Craft Institute (FCI)

A proposal for a new FCI is taken…

A proposal for a new FCI is taken up for consideration only once the State Government has registered the FCI Society under the Societies Registration Act, 1860.

The concerned State Government/Union Territory Administration must transfer…

The concerned State Government/Union Territory Administration must transfer developed, encumbrance-free land for the project.

This land, registered in the FCI Society's name,…

This land, registered in the FCI Society's name, must measure at least three acres.

Commitments for basic utilities — electricity, water supply,…

Commitments for basic utilities — electricity, water supply, and sewerage — must be in place.

Documentation evidencing the land transfer in favour of…

Documentation evidencing the land transfer in favour of the FCI Society must be submitted. Preference, Priority, Reservation, Relaxation

For a FCI proposed in hilly areas or…

For a FCI proposed in hilly areas or the six classified large Urban Agglomeration cities, the minimum developed land requirement drops to one acre.

Academic and equipment infrastructure norms, including covered-area requirements,…

Academic and equipment infrastructure norms, including covered-area requirements, must still be followed strictly when this relaxation is used. E. Criteria for Setting up FCI in an Existing Building

The building proposed for the FCI must be…

The building proposed for the FCI must be provided free of cost by the concerned State Government/Union Territory Administration.

It must be structurally suitable to house the…

It must be structurally suitable to house the FCI.

The overall proposal must otherwise be feasible

The overall proposal must otherwise be feasible. F. Criteria for Setting up New Centres of Indian Institute of Tourism & Travel Management (IITTM), Indian Culinary Institute (ICI), National Council for Hotel Management & Catering Technology (NCHMCT)

The applicant in this case may be the…

The applicant in this case may be the State Government, the Ministry of Tourism, or the Institute itself.

Developed, encumbrance-free land must be transferred by the…

Developed, encumbrance-free land must be transferred by the concerned State Government/Union Territory Administration.

This land must measure at least five acres

This land must measure at least five acres.

A commitment to provide basic utilities — electricity,…

A commitment to provide basic utilities — electricity, water, and sewerage — must be furnished.

Alternatively, adequate land already held by the Central…

Alternatively, adequate land already held by the Central Government Institution's Society may be used. Preference, Priority, Reservation, Relaxation

Should the Centre come up in hilly areas…

Should the Centre come up in hilly areas or the six classified large Urban Agglomeration cities, the land requirement is relaxed to two acres.

Academic and equipment infrastructure norms, including covered areas,…

Academic and equipment infrastructure norms, including covered areas, must be strictly complied with when this dispensation is invoked. G. Criteria for Applied Training Centre (ATC) attached to Central IHMs

Only a Central Institute of Hotel Management may…

Only a Central Institute of Hotel Management may apply for an Applied Training Centre (ATC).

The Institute must either have two acres of…

The Institute must either have two acres of surplus land on hand or arrange for the State Government to supply the additional land needed.

No hotel should be located within two kilometres…

No hotel should be located within two kilometres of the proposed ATC site. Post-Selection Conditions

IHMs and FCIs must comply with the academic…

IHMs and FCIs must comply with the academic and admission norms laid down by the NCHMCT.

Before funds are sanctioned for a new IHM,…

Before funds are sanctioned for a new IHM, the concerned State Government/UT Administration must undertake in writing to observe these norms.

Admission to IHMs must be conducted through a…

Admission to IHMs must be conducted through a joint entrance examination.

Where a CFA-funded SIHM operates under a university,…

Where a CFA-funded SIHM operates under a university, its curriculum must align with the NCHMCT/Indira Gandhi National Open University (IGNOU) syllabus.

Any such affiliating university must carry University Grants…

Any such affiliating university must carry University Grants Commission (UGC) recognition.

Should project costs exceed the Ministry's sanctioned assistance,…

Should project costs exceed the Ministry's sanctioned assistance, the shortfall must be borne by the concerned State Government/Union Territory Administration.

Setting up a new State Institute of Hotel Management (SIHM):

◦ The overall Central Financial Assistance ceiling stands at ₹12,50,00,000/-. ◦ Of this, the construction component is capped at ₹10,00,00,000/-. ◦ Equipment purchases are capped at ₹2,50,00,000/-. ◦ A further ₹4,00,00,000/- is available for building a Hostel Block. • Setting up a SIHM in an existing Building: ◦ Assistance for constructing the academic block is capped at ₹6,00,00,000/- or 75% of construction cost, whichever works out lower. ◦ Hostel construction assistance tops out at ₹2,00,00,000/-. ◦ Equipment purchase assistance is likewise capped at ₹2,00,00,000/-. • Setting up a new Food Craft Institute (FCI) by State Government/Union Territory Administration: ◦ The total ceiling for this category is ₹5,50,00,000/-. ◦ Building construction is capped at ₹4,35,00,000/-. ◦ Equipment is capped at ₹1,15,00,000/-. ◦ An additional ₹2,00,00,000/- is available for hostel facilities. • Setting up a FCI in an existing Building: ◦ Academic block construction assistance is limited to ₹2,80,00,000/- or 75% of construction cost, whichever is lower. ◦ Equipment purchase assistance goes up to ₹1,15,00,000/-. • Applied Training Centre (ATC) attached to Central IHMs: ◦ Construction assistance tops out at ₹5,00,00,000/-. • Promotional Initiatives (Broad-basing for Public Sector Undertaking - PSU): ◦ The one-time Central Financial Assistance cannot exceed ₹2,40,00,000/-. ◦ Of this, civil works are capped at ₹60,00,000/-. ◦ Heavy & Small Equipment, Furniture & Fixtures assistance is capped at ₹1,80,00,000/-. B. Adjustment and Flexibility

Funds may be shifted between components — academic…

Funds may be shifted between components — academic block construction, hostels, and equipment — by up to 10% of the respective ceilings.

This flexibility is granted case-by-case and only before…

This flexibility is granted case-by-case and only before sanction; once a project is sanctioned, no further reallocation is permitted. C. Fund Disbursement and Conditions

Disbursements flow through the Central Nodal Agency (CNA)…

Disbursements flow through the Central Nodal Agency (CNA) — the National Council for Hotel Management & Catering Technology (NCHMCT) — which holds its account with the State Bank of India (SBI); the Implementing Agency, in turn, operates a zero-balance SBI account and draws down funds in real time up to whatever the Ministry has authorised.

As soon as a project is sanctioned, up…

As soon as a project is sanctioned, up to ₹10,00,000/- is released immediately to cover preparatory expenses.

First Installment:

Once tendering is complete, 40% of the sanctioned amount is released, adjusted against the ₹10,00,000/- preparatory fund already paid.

Subsequent Installments

Subsequent Installments: The remaining balance follows in further tranches of 40% and 15%.

Final Installment:

The closing 5% is paid out only after all civil works are finished and documents such as the completion certificate and proof of credit display to the Ministry are submitted.

Release:

Payment of the first installment is contingent on land having been transferred to the society and on the contract being awarded by the implementing agency; every later installment additionally requires a Utilization Certificate (UC) covering at least 75% of the preceding installment(s).

Renewal/Continuation:

A fresh request for major maintenance or renovation assistance exceeding ₹20,00,000/- is taken up only after five years have elapsed since the earlier grant for that purpose was sanctioned.

A comprehensive Detailed Project Report submitted by the…

A comprehensive Detailed Project Report submitted by the State Government.

Proof that the IHM/FCI/SIHM society is registered under…

Proof that the IHM/FCI/SIHM society is registered under the Societies Registration Act, 1860.

Papers confirming transfer of land into the society's…

Papers confirming transfer of land into the society's name.

A written explanation of the reasons where land…

A written explanation of the reasons where land could not be transferred to the society.

A signed undertaking to follow the academic and…

A signed undertaking to follow the academic and admission norms set by the NCHMCT, where an IHM/SIHM is being set up.

An NCHMCT certification, issued after a site inspection,…

An NCHMCT certification, issued after a site inspection, confirming that the existing building proposed for an IHM is fit for purpose.

Detailed cost-wise proposals for any additions, alterations, or…

Detailed cost-wise proposals for any additions, alterations, or new components, approved by the Building Committee and Board of Governors, for projects receiving Ministry of Tourism assistance. During Fund Disbursal

Evidence of contract award by the implementing agency,…

Evidence of contract award by the implementing agency, needed to release the first installment.

A Utilization Certificate (UC) covering at least 75%…

A Utilization Certificate (UC) covering at least 75% of the previous installment(s).

Supporting records — physical-progress reports, expenditure statements, and…

Supporting records — physical-progress reports, expenditure statements, and audited accounts — accompanying the UC.

Justification for any extra funds sought because of…

Justification for any extra funds sought because of cost escalation, approved by the Building Committee and Board of Governors, where applicable.

A completion certificate, needed for the final 5%…

A completion certificate, needed for the final 5% installment.

Proof of display of credit to the Ministry,…

Proof of display of credit to the Ministry, also required for the final installment.