The scheme aims to encourage the expansion of existing tourism accommodation units by incentivizing private investment in the state. The scheme provides a capital investment subsidy of 15% against the fixed capital investment, subject to a maximum ceiling of âš5,00,00,000/-.
About This Scheme
The scheme “Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel” was launched by the Madhya Pradesh Tourism Department, Government of Madhya Pradesh. The scheme aims to encourage the expansion of existing tourism accommodation units by incentivizing private investment in the state. The scheme provides a capital investment subsidy of 15% against the fixed capital investment, subject to a maximum ceiling of âš5,00,00,000/-. The applicant must ensure an expansion of at least 50% in the staying capacity of the established unit to be eligible for the subsidy. The scheme is implemented by the Madhya Pradesh Tourism Board. The applications for this scheme are accepted online through the Madhya Pradesh Government’s Invest Portal.
Benefits
The beneficiary is entitled to a Capital Investment Subsidy of 15% against the Fixed Capital Investment.
The maximum ceiling for the subsidy is âš5,00,00,000/-.
The subsidy is granted for the expansion of established Star, Deluxe, Standard Hotels, Resorts, or Heritage Hotels.
Conditions
The unit must maintain continuous operation and submit a self-declaration on or before the 15th of April every year regarding the continuous operation of the unit for at least three years from the date of availing the subsidy.
If the unit closes within 1 year from the date of receipt of the subsidy, 80% of the subsidy amount has to be refunded.
If the unit closes within 2 years from the date of receipt of the subsidy, 60% of the subsidy amount has to be refunded.
If the unit closes within 3 years from the date of receipt of the subsidy, 50% of the subsidy amount has to be refunded.
Eligibility Criteria
The applicant must have an established Star, Deluxe, or Standard Hotel, Resort, or Heritage Hotel.
The applicant must incur a minimum capital expenditure of âš1,00,00,000/- as approved by the department.
The applicant must ensure an expansion in terms of a minimum of 50% increased staying capacity to be eligible for the subsidy.
The applicant must obtain the necessary certification of heritage hotels/tourism projects from the Tourism Department to avail the exemptions/facilities.
The applicant must submit the application for capital subsidy within 1 year from the date of commencement of operation.
The applicant must ensure that the investment made prior to 3 years from the date of commencement of operation is not calculated for the capital subsidy.
Application Process
Apply Offline
Registration Process
Step 1: The applicant must visit the Madhya Pradesh Government’s
Invest Portal,
and initiate the registration process as a “Vendor / Investor”.
Step 2: The applicant must fill in the basic information section by selecting the appropriate “Type of Organisation” from the available options, which include Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, and Individual. The applicant must enter the “Firm/Company Name” and the “Authorized Person Name” to establish the identity of the entity.
Step 3: The applicant must enter a valid email ID and mobile number. The Application Number, User ID, password, and all other important communications will be sent to this registered email ID.
Step 4: The applicant must complete the basic registration form submission. The system generates a User ID and password, which are shared directly with the applicant’s registered mobile number.
Step 5: The authorized person logs in to the portal using the User ID and password received on the registered mobile number to process the company’s activities. After the initial login, the applicant must update their profile to complete the full registration process before proceeding to apply for the scheme.
Application Process
Step 1: The applicant must apply for and secure mandatory permissions through the online single-window system within the stipulated time frames. Then, the applicant must do the following –
Complete the construction, ensuring the minimum capital expenditure is met.
Commence commercial operations and gather proof of operation.
Step 2: The applicant must submit the capital subsidy application online within one year from the date of commencement of operation. Upload all required documents, ensuring all files meet the specified format requirements (e.g., JPG for photos).
Step 3: The Tourism Department/Board verifies the application and documents and processes the subsidy claim.
Official Source: View on myScheme.gov.in