Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation
By Madhya Pradesh Tourism Board
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Quick Answer
This scheme by the Madhya Pradesh Tourism Board offers a capital subsidy to existing hotels and resorts for renovation, modernization, and upgradation to Deluxe or 4-star and higher categories.
- Funding amount
- Varies
- Funding type
- Subsidy
- Provider
- Madhya Pradesh Tourism Board
- Application deadline
- Rolling
- Location
- Madhya Pradesh
About this subsidy
The "Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation" scheme, launched by the Department of Tourism, Government of Madhya Pradesh, aims to boost private investment in the tourism sector. It incentivizes the renovation, modernization, and upgradation of existing hotel and resort units within Madhya Pradesh to achieve Deluxe or higher category ratings. The scheme provides a capital subsidy based on tourism policy guidelines for specific categories, subject to meeting minimum capital investment and capacity milestones. Applicants must be existing hotel or resort units undertaking significant capital investment, either ₹10 crore or ₹25 crore, depending on the desired upgradation category. The program is implemented by the Madhya Pradesh Tourism Board and applications are accepted online via the Madhya Pradesh Government's Invest Portal.
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
What You Get
The scheme provides a capital subsidy to existing hotels and resorts for renovation and modernization. This subsidy is calculated according to the tourism policy for various categories of upgrades. Units upgrading to Deluxe Hotels (minimum 50 rooms) or Deluxe Resorts (minimum 20 rooms) are eligible. Similarly, existing Deluxe hotels and resorts upgrading to 4-star or higher category (minimum 75 rooms for hotels, minimum 25 for resorts) are also eligible. An additional 5% Capital Investment Subsidy is granted for tourism projects established in distant and ulterior areas. The subsidy is contingent on meeting specific investment thresholds: ₹10 crore for Category A and ₹25 crore for Category B. The program also supports the regulatory process by requiring applicants to secure mandatory permissions through an online single-window system.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications and supporting documents are verified by the Madhya Pradesh Tourism Department/Board to ensure compliance with the scheme's eligibility criteria, investment milestones, and operational commencement. Decisions are made based on the fulfillment of these conditions as per the tourism policy guidelines.
Application Process
- 1
Register on Invest Portal
Initiate registration as a 'Vendor / Investor' on the Madhya Pradesh Government's Invest Portal and complete profile setup.
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 purpose of this scheme?
The scheme aims to encourage renovation, modernization, and upgradation of existing hotels and resorts in Madhya Pradesh into Deluxe or higher category establishments through private investment.
Who is eligible to apply for this subsidy?
Existing Standard Hotels or Mini Resorts can apply for Category A (upgrading to Deluxe), and existing Deluxe Hotels or Resorts can apply for Category B (upgrading to 4-star or higher). Specific room count and investment criteria apply.
What are the minimum investment requirements?
A minimum capital investment of ₹10 crore is required for Category A upgradation, and ₹25 crore for Category B upgradation.
Is there an additional subsidy for certain locations?
Yes, an additional 5% Capital Investment Subsidy is available for tourism projects established in distant and ulterior areas within Madhya Pradesh.
When should the application for the subsidy be submitted?
The application must be submitted online within one year from the date of commencement of commercial operations after upgradation.
What happens if a unit closes after availing the subsidy?
Units must run for at least three years. If a unit closes within 1, 2, or 3 years, 80%, 60%, or 50% of the subsidy amount, respectively, must be refunded.
Sources
Data on this page is compiled from official program and provider references.
