Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas
By Tourism Department, Government of Madhya Pradesh
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Quick Answer
This Madhya Pradesh government scheme offers an additional 5% capital investment subsidy and relaxed requirements for establishing tourism projects in remote and less developed regions.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Madhya Pradesh
About this subsidy
The scheme, "Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas," was initiated by the Tourism Department, Government of Madhya Pradesh. Its core objective is to significantly boost the development of tourism infrastructure within the remote, strategically accessible, and often less developed regions across the state. By offering enhanced financial incentives, the program aims to de-risk investments and encourage entrepreneurs to establish tourism-related businesses in these priority areas. This initiative is crucial for balanced regional growth, creating employment opportunities, and showcasing the unexplored natural and cultural heritage of Madhya Pradesh. The program provides an additional 5% Capital Investment Subsidy on top of the standard policy rates outlined in the state's broader Tourism Policy. A key feature of this scheme is the removal of any maximum ceiling on the subsidy amounts, allowing for substantial support to larger projects. Furthermore, it significantly relaxes both the minimum investment and room count requirements, making it more accessible for a wider range of tourism project types and investors. Applicants are required to establish a tourism project in a location specifically designated as a "distant" or "ulterior" area by the Tourism Department, ensuring the incentive targets the intended geographical zones. The scheme is meticulously implemented by the Madhya Pradesh Tourism Board, and all applications are efficiently managed through the state's unified investment portal. This streamlined approach facilitates ease of application and timely processing for prospective investors.
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
This scheme offers a compelling package of financial incentives designed to catalyze tourism development in underserved regions. The primary benefit is an additional 5% Capital Investment Subsidy, which is provided over and above the standard subsidy percentage already applicable under the state's general Tourism Policy. This cumulative subsidy significantly enhances the financial viability of new projects. Critically, there is no upper limit (ceiling) on the maximum amount of capital subsidy that can be claimed, enabling large-scale projects to receive substantial support without artificial caps. To further encourage participation in remote areas, the scheme also features reduced eligibility requirements: the minimum capital investment limit is lowered to 50% of the prescribed limit in the Tourism Policy for the specific project type, and the required room capacity is similarly reduced to 50% of the standard requirement. This makes it easier for smaller or niche tourism projects to qualify and benefit, promoting diverse infrastructure development.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are reviewed and verified by the Tourism Department/Board. This process involves checking the submitted documents and ensuring compliance with all eligibility criteria, including project location, investment, and capacity requirements. The subsidy claim is then processed upon successful verification.
Application Process
- 1
Register on Invest Portal
Applicant visits the Madhya Pradesh Government's Invest Portal and registers as a "Vendor / Investor" by providing organization type, firm name, authorized person name, email, and mobile number.
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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
Q: What is the primary objective of the "Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas" scheme?
A: The scheme aims to foster the development of tourism infrastructure in remote, accessible, and less developed regions of Madhya Pradesh by providing enhanced financial incentives and relaxing eligibility criteria for new tourism projects.
Q: What kind of financial incentive does this scheme offer to applicants?
A: The scheme provides an additional 5% Capital Investment Subsidy on top of the standard subsidy rates already applicable under the state's Tourism Policy. This significantly reduces the capital expenditure burden for investors.
Q: Is there any upper limit or cap on the total subsidy amount that can be claimed?
A: No, a key benefit of this scheme is the removal of any maximum ceiling on the amount of capital subsidy that can be claimed, allowing for substantial financial support for eligible large-scale projects.
Q: What are the key eligibility criteria concerning the project's location?
A: To be eligible, the tourism project must be established in a location specifically classified as a "distant" or "new ulterior" area by the Government of Madhya Pradesh, Tourism Department.
Q: How does the scheme relax investment and capacity requirements for tourism projects?
A: The scheme significantly reduces both the minimum capital investment limit and the minimum room count requirement to 50% of the standard limits prescribed in the general Tourism Policy for the specific project type, making it more accessible for new ventures.
Q: What is the general application process for this capital investment subsidy?
A: Applicants must first register on the Madhya Pradesh Government's Invest Portal, secure mandatory project permissions, complete project construction, and commence commercial operations. The capital subsidy application must then be submitted online within one year from the date of operation commencement, followed by verification by the Tourism Department.
Sources
Data on this page is compiled from official program and provider references.
