Capital Subsidy for Heritage Hotel under Proprietorship
By Tourism Department, Government of Madhya Pradesh
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
A capital subsidy of 15% (up to ₹2 crore) on fixed capital investment for proprietors establishing heritage hotels in Madhya Pradesh, provided by the Tourism Department.
- Funding amount
- ₹45L – ₹2Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Madhya Pradesh
About this subsidy
The 'Capital Subsidy for Heritage Hotel under Proprietorship' scheme was launched by the Tourism Department, Government of Madhya Pradesh, to catalyze private investment in the state's heritage tourism sector. This initiative aims to preserve and promote Madhya Pradesh's rich cultural legacy by encouraging the establishment and development of heritage hotels. The scheme provides significant financial assistance to proprietorship firms, thereby fostering entrepreneurship and job creation within the hospitality industry. It offers a capital subsidy to help offset the substantial fixed capital investments required for developing high-quality heritage tourism infrastructure. The program is specifically designed to support individual entrepreneurs who are committed to contributing to the state's tourism landscape. The scheme is implemented by the Madhya Pradesh Tourism Board, ensuring efficient execution and support for eligible projects. Applications are managed through state investment portals, making the process accessible for eligible proprietors.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
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
- ₹45L – ₹2Cr
What You Get
The scheme offers a significant financial incentive in the form of a capital subsidy of 15% on approved fixed capital investment. This subsidy is capped at a maximum of ₹2,00,00,000/- (₹2 crore). This direct financial assistance aims to reduce the initial investment burden for proprietors developing heritage hotels. The support is contingent on the hotel being operationalized during the policy's tenure and maintaining continuous operation for at least three years post-subsidy receipt. This ensures the longevity and impact of the investment in the state's tourism infrastructure.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are subjected to a rigorous verification process by the Madhya Pradesh Tourism Department/Board. This involves checking the eligibility criteria, validation of fixed capital investment, and confirmation of operational status. Once all documents and project details are verified to be in compliance with the scheme guidelines, the subsidy claim is processed for disbursal.
Application Process
- 1
Register on Invest Portal
Create an account on the Madhya Pradesh Government's Invest Portal as a 'Vendor / Investor'.
You - 2
- 3
- 4
- 5
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 maximum subsidy I can receive?
The maximum capital subsidy available under this scheme is ₹2,00,00,000/- (₹2 crore).
What is the minimum investment required?
Applicants must incur a minimum capital expenditure of ₹3,00,00,000/- (₹3 crore) on their heritage hotel project to be eligible for the subsidy.
Who is eligible to apply for this scheme?
The scheme is exclusively open to proprietorship firms that are establishing a 'Heritage Hotel' as a Tourism Project in Madhya Pradesh.
Is the subsidy repayable?
The subsidy is conditionally repayable. If the unit ceases operation within three years of receiving the subsidy, a portion of the amount must be refunded (e.g., 80% if closed within 1 year, 60% within 2 years, 50% within 3 years).
How do I apply for the capital subsidy?
Applications are submitted online through the Madhya Pradesh Government's Invest Portal. The application must typically be made within one year from the date of commencing commercial operations of the heritage hotel.
Sources
Data on this page is compiled from official program and provider references.
