The scheme aims to encourage the establishment of new standard category hotels and mini resorts in Madhya Pradesh. It provides a 15% capital subsidy up to âš50,00,000/- to private investors and entrepreneurs creating tourism accommodation infrastructure.
About This Scheme
The scheme “Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category” was launched by the Tourism Department, Government of Madhya Pradesh. The scheme provides a capital investment subsidy of 15% against fixed capital investment, subject to a maximum ceiling of âš50,00,000/-. The applicant must invest a minimum capital expenditure of âš2,00,00,000/- and ensure the availability of a minimum of air-conditioned lettable rooms (25 for hotels or 10 for resorts). The scheme is implemented by the Madhya Pradesh Tourism Board. The applications for this scheme are accepted within one year from the date of commencement of operation.
Benefits
The scheme offers a Capital Investment Subsidy of 15% against the fixed Capital Investment.
The maximum ceiling of the subsidy is âš50,00,000/-.
Conditions
It is mandatory for the unit to run for at least three years from the date of availing the subsidy.
The unit must submit a self-declaration on or before the 15th of April every year regarding the continuous operation of the unit.
If the unit closes within 1 year from the date of receipt of subsidy, 80% of the subsidy amount must be refunded.
If the unit closes within 2 years from the date of receipt of subsidy, 60% of the subsidy amount must be refunded.
If the unit closes within 3 years from the date of receipt of subsidy, 50% of the subsidy amount must be refunded.
Eligibility Criteria
The applicant must establish a new Hotel or Mini Resort of Standard category.
The applicant must incur a minimum capital expenditure of âš2,00,00,000/- as approved by the department.
The applicant must ensure the Hotel has a minimum of 25 air-conditioned lettable rooms.
The applicant must ensure the Resort has a minimum of 10 air-conditioned lettable rooms.
The applicant must mandatorily provide employment to 70% residents of Madhya Pradesh for new Standard hotels.
The applicant must submit the application for subsidy within 1 year from the date of commencement of operation.
The applicant must ensure the investment made prior to 3 years from the date of commencement of operation is not included in the capital subsidy calculation.
Application Process
Apply Offline
Registration Process
Step 1: The applicant must visit the Madhya Pradesh Government’s
Invest Portal
to initiate the registration process as a “Vendor / Investor.” This portal serves as the single interface for availing different kinds of services offered by the corporation to investors and vendors.
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 also accurately 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, ensuring that both remain active throughout the entire process, as the Application Number, User ID, password, and all other important communications will be sent to this registered email ID. The applicant must verify that the email address is correct and ensure that emails sent to this mailbox are not redirected to the junk or spam folder.
Step 4: The applicant must complete the basic registration form submission, noting that there is no charge for this specific basic registration step. Upon successful submission of the information, the system generates a User ID and password, which are shared directly to the applicant’s registered mobile number for login purposes.
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 of âš2,00,00,000/- is met.
Commence commercial operations and gather proof of operation, such as the first lodging or catering bill.
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