Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel
By Tourism Department, Government of Madhya Pradesh
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Quick Answer
A capital investment subsidy of 15% (up to ₹5 crore) by the Madhya Pradesh Tourism Department to incentivize the expansion of existing hotels, resorts, and heritage properties in the state.
- Funding amount
- Up to ₹5Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Madhya Pradesh
About this subsidy
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. It provides a capital investment subsidy of 15% against the fixed capital investment, with a maximum ceiling of ₹5,00,00,000/-. Applicants must ensure an expansion of at least 50% in the staying capacity of the established unit to be eligible. The scheme is implemented by the Madhya Pradesh Tourism Board and applications are accepted online through the Madhya Pradesh Government's Invest Portal. This initiative is designed to boost the tourism sector in Madhya Pradesh by fostering growth and development within the hospitality industry, thereby attracting more tourists and generating economic opportunities. The long-term objective is to position Madhya Pradesh as a premier tourist destination through enhanced infrastructure.
Eligibility
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Subsidy providers
The Madhya Pradesh Tourism Board is the state's tourism agency. It runs a set of schemes for people building, upgrading or running tourism projects in Madhya Pradesh. Most are capital subsidies for hotels, resorts and tourism infrastructure. The rest cover land and heritage…
Learn moreBenefits & Funding
- Amount
- Up to ₹5Cr
What You Get
The scheme offers a Capital Investment Subsidy of 15% against the Fixed Capital Investment, capped at a maximum of ₹5,00,00,000/-. This non-repayable subsidy is designed to support the expansion of established Star, Deluxe, Standard Hotels, Resorts, or Heritage Hotels. The financial incentive aims to reduce the burden of capital expenditure, making it more attractive for businesses to invest in increasing their staying capacity. Additionally, the scheme supports continuous operation by outlining refund conditions for early closure, ensuring sustained business activity in the tourism sector.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The Tourism Department/Board verifies the application and documents submitted by the applicant to ensure compliance with the scheme's eligibility criteria and conditions. Once verified, the subsidy claim is processed, and funds are disbursed according to the program guidelines. This process ensures that only eligible units receive the subsidy for their expansion projects, maintaining the integrity and objectives of the scheme.
Application Process
- 1
Register on Invest Portal
The applicant must register as a "Vendor / Investor" on the Madhya Pradesh Government's Invest Portal and complete profile setup.
You - 2
- 3
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of this scheme?
The scheme aims to encourage the expansion of existing tourism accommodation units (Star/Deluxe/Standard Hotel/Resort/Heritage Hotel) by incentivizing private investment in Madhya Pradesh.
What is the maximum subsidy available?
The maximum capital investment subsidy is ₹5,00,00,000/- (₹5 crore).
What is the minimum expansion required for eligibility?
Applicants must ensure an expansion of at least 50% in the staying capacity of the established unit.
What is the application deadline?
The application for capital subsidy must be submitted online within one year from the date of commencement of operation.
What happens if the unit closes after availing the subsidy?
If the unit closes within 1 year, 80% of the subsidy must be refunded; within 2 years, 60%; and within 3 years, 50%.
Sources
Data on this page is compiled from official program and provider references.
