Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease
By Tourism Department, Government of Madhya Pradesh
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Quick Answer
A scheme by the Madhya Pradesh Tourism Department offering a 15% capital investment subsidy, up to ₹5 crore, for private investors establishing heritage hotels on leased government heritage assets.
- Funding amount
- ₹1.5Cr – ₹5Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Madhya Pradesh
About this subsidy
The scheme "Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease" was launched by the Tourism Department, Government of Madhya Pradesh. The primary goal of this initiative is to foster private sector engagement in the preservation and operationalization of government-owned heritage properties by transforming them into heritage hotels. This strategic approach not only ensures the conservation of valuable cultural assets but also stimulates economic growth through tourism. The scheme offers a substantial capital investment subsidy of 15% against the fixed capital investment made by the private sector, capped at a maximum of ₹5,00,00,000/-. To be eligible, applicants must commit a minimum capital expenditure of ₹10,00,00,000/- for projects that receive approval from the department. The operational aspects and implementation of this scheme are managed by the Madhya Pradesh Tourism Board, ensuring efficient execution and support for investors. Applications are streamlined through the State Government’s Invest Portal, providing a single-window interface for prospective investors. The program is designed to attract significant private investment, leverage heritage assets for tourism, and create sustainable economic opportunities within the state of Madhya Pradesh.
Eligibility
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Subsidy providers
Benefits & Funding
- Amount
- ₹1.5Cr – ₹5Cr
What You Get
The scheme provides a capital subsidy of 15% against the Fixed Capital Investment made in the project, with a maximum ceiling of ₹5,00,00,000/-. This significant financial incentive is designed to reduce the capital burden on private investors. Additionally, SC/ST category entrepreneurs establishing the tourism project under 100% ownership are entitled to an additional 5% capital investment subsidy. Projects established in distant and ulterior areas also qualify for an additional 5% Capital Investment Subsidy, further incentivizing development in underserved regions. The scheme also provides regulatory support through the Tourism Department's approval and certification process for heritage hotels.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection and disbursement process involves the thorough verification of applications and supporting documents by the Madhya Pradesh Tourism Department/Board. Once all criteria, including minimum capital expenditure and commencement of commercial operations, are met and certified, the department processes the subsidy claim. Additional verification steps may include site visits or documentary checks to confirm continuous operation for the specified period.
Application Process
- 1
Register on Invest Portal
Visit the MP Invest Portal, provide basic organizational and contact details, and complete the initial registration to receive login credentials.
You - 2
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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 private investment in the conservation and operationalization of government-owned heritage properties by converting them into heritage hotels, thereby promoting tourism and economic development in Madhya Pradesh.
What is the maximum capital subsidy I can receive?
The scheme provides a capital investment subsidy of 15% against fixed capital investment, subject to a maximum ceiling of ₹5,00,00,000/- (₹5 crore).
Are there any additional subsidies available?
Yes, SC/ST category entrepreneurs with 100% ownership are entitled to an additional 5% capital investment subsidy. Projects established in distant and ulterior areas also receive an additional 5% Capital Investment Subsidy.
What is the minimum investment required to be eligible?
Applicants must incur a minimum capital expenditure of ₹10,00,00,000/- (₹10 crore) in the project, as approved by the department.
When can I apply for the subsidy?
You must submit the capital subsidy application online within one year from the date of commencement of commercial operations of your heritage hotel project, after meeting the minimum capital expenditure and securing mandatory permissions.
What happens if my unit closes after receiving the subsidy?
To ensure sustained operation, the scheme includes clawback provisions: 80% of the subsidy must be refunded if the unit closes within 1 year, 60% within 2 years, and 50% within 3 years of receiving the subsidy. The unit must operate continuously for at least three years.
Sources
Data on this page is compiled from official program and provider references.
