Uttarakhand Tourism Entrepreneur Promotion Scheme

Frequently Asked Questions

Q1: Who is eligible to apply for the Uttarakhand Tourism Entrepreneur Promotion Scheme?

A1: The scheme is open to permanent residents and entrepreneurs of Uttarakhand who intend to invest between ₹1 crore and ₹5 crore in identified tourism activities within the state. The legal entity must be registered as a sole proprietorship, partnership, LLP, private limited company, or any other legal entity, with exclusive participation by permanent residents/entrepreneurs of Uttarakhand.

Q2: What types of financial incentives are available under this scheme?

A2: The scheme offers three main financial incentives: a capital grant (ranging from ₹80 lakh to ₹1.5 crore depending on the district category), 100% reimbursement on stamp duty paid for eligible transactions, and a 3% interest subsidy on term loans (up to ₹6 lakh per year for three years).

Q3: What kind of tourism activities are identified for financial incentives?

A3: A wide range of tourism activities are eligible, including but not limited to heritage hotels, resorts, spas & wellness centers, MICE facilities, eco lodges, residential tents, ropeways, tourist parking, expansion of existing hotels, and tourism/hospitality training centers.

Q4: Is there a maximum limit on the investment for a unit under this scheme?

A4: Yes, the proposed investment in identified tourism activities/operations should be between ₹1 crore and ₹5 crore to be eligible for the scheme's benefits.

Q5: What are the conditions for receiving the capital grant and interest subsidy?

A5: For the capital grant, the investor must ensure full payment for all capital assets and complete project ownership, with assets installed and used at the project site. The interest subsidy is applicable on term loans from notified financial institutions and is payable for a maximum of 3 years from the date of commercial operation commencement. Both typically require in-principle approval via the Common Application Form (CAF) and compliance with local employment mandates.

Q6: Are there specific requirements regarding employment generation?

A6: Yes, the applicant's tourism unit is required to provide a minimum of 70% permanent local employment, emphasizing the scheme's objective of creating job opportunities for Uttarakhand residents.

Q7: Where can I find the official guidelines and application portal?

A7: The official guidelines are available at https://investuttarakhand.uk.gov.in/themes/backend/acts/act_hindi1725277972.pdf. The application process begins by registering on the Invest Uttarakhand Official Portal at https://investuttarakhand.uk.gov.in/sso/account/register.

About this grant

The Uttarakhand Tourism Entrepreneur Promotion Scheme, introduced by the Tourism Department, Uttarakhand Government, is a pivotal initiative designed to bolster the state's tourism sector by encouraging and financially empowering local residents and entrepreneurs. The scheme targets investments ranging from ₹1 crore to ₹5 crore in identified tourism activities, aiming to foster sustainable economic growth and job creation within the region. By providing robust financial incentives, including stamp duty reimbursement, capital grants, and interest subsidy reimbursements, the program seeks to reduce financial barriers and stimulate new ventures and expansions in the state’s dynamic tourism landscape.

The primary objectives of the scheme are multi-faceted. It aims to facilitate the establishment and development of small to medium tourism units, thereby enabling local investors to contribute significantly to the state's tourism economy. A core focus is on generating substantial employment opportunities, promoting inclusive growth, and cultivating a competitive entrepreneurial environment. The scheme specifically prioritizes the development of high-quality, world-class tourism infrastructure and services across various categories, ensuring that new facilities meet international standards. Furthermore, it strives to create a highly favorable investment climate for local entrepreneurs by maximizing the benefits of financial incentives, thereby motivating new investments and expansions. This inclusive approach ensures that the economic benefits, employment generation, and infrastructure enhancements are distributed across all regions of Uttarakhand, centralizing resources and support for comprehensive tourism development. The scheme is strategically aligned with the Uttarakhand Tourism Policy 2023, reinforcing the state's commitment to supporting tourism-related initiatives that are vital for its overall economic development and the well-being of its citizens.

The Uttarakhand Tourism Entrepreneur Promotion Scheme offers a comprehensive suite of financial benefits designed to significantly reduce the financial burden on entrepreneurs investing in the state's tourism sector.

Capital Grant/Assistance: A substantial financial grant is provided based on the permissible capital investment for establishing new or expanding existing eligible tourism units. The grant amount is tiered by district category to incentivize investment in less developed areas. For Category A districts, the maximum grant is ₹80 lakh; for Category B districts, it extends up to ₹1.2 crore; and for Category C districts, the maximum grant can reach ₹1.5 crore. This grant supports investments in critical infrastructure such as buildings, plant, machinery, equipment, and auxiliary facilities.
Stamp Duty Reimbursement: Eligible tourism units can receive 100% reimbursement on the stamp duty paid for sale/lease deeds of land or built-up areas, as well as on loan agreements, mortgages, and pledges executed during the scheme's validity period. This reimbursement is provided in a lump sum upon the commencement of commercial operations, significantly lowering initial setup costs.
Interest Subsidy Reimbursement: A 3% interest subsidy is provided on term loans taken from approved financial institutions. This subsidy is capped annually, with a maximum of ₹4 lakh per year for Category A districts, ₹5 lakh per year for Category B districts, and ₹6 lakh per year for Category C districts. The subsidy is payable for a maximum of three years from the date of commercial operation commencement, directly reducing the cost of borrowing for eligible projects. These combined benefits aim to create a highly attractive financial ecosystem for tourism entrepreneurs in Uttarakhand.

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