Central GovernmentVerified

Capital Investment Subsidy for Establishment of New Resort and Wellness Centre

The scheme provides a capital investment subsidy of 15% against fixed capital investment, subject to a maximum ceiling of ₹50,00,000/-. The applicant must invest a minimum capital expenditure of ₹2,00,00,000/- and ensure the availability of a minimum of air-conditioned lettable rooms.

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About This Scheme

The scheme "Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category" was launched by the Tourism Department, Government of Madhya Pradesh. The scheme provides a capital investment subsidy of 15% against fixed capital investment, subject to a maximum ceiling of ₹50,00,000/-. The applicant must invest a minimum capital expenditure of ₹2,00,00,000/- and ensure the availability of a minimum of air-conditioned lettable rooms (25 for hotels or 10 for resorts). The scheme is implemented by the Madhya Pradesh Tourism Board. The applications for this scheme are accepted within one year from the date of commencement of operation.

Benefits

₹2.0 Cr

The scheme provides a Capital Investment Subsidy of 15% against the Fixed Capital Investment.
The maximum ceiling of the subsidy is ₹2,00,00,000/-.

Disbursement Conditions

The unit must be established and operationalised during the operative tenure of the Tourism Policy 2025.
If the unit executes and operates the entire project in one go, the capital expenditure incurred up to a maximum of 05 years prior to the commencement of the unit (as approved by the department) will be considered valid for the calculation of the capital grant.
If the unit is entitled to a grant/subsidy in more than one category, the applicant must choose only one category in which they are willing to get the benefit.
The unit must be run for at least three years from the date of availing the subsidy, and a self-declaration regarding continuous operation must be submitted on or before the 15th of April every year.
On non-compliance regarding the three-year operation period, the subsidy is liable to be recovered with interest/penalty:

a) Closure within 1 year: 80% to be refunded.

b) Closure within 2 years: 60% to be refunded.

c) Closure within 3 years: 50% to be refunded.

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.

Required Documents

✦
Brief Note on Business Antecedents
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Proof of Legal Authorized Person from the Unit
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Memorandum and Articles of Association (if Public/Private Limited Company)
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Partnership Deed and Certificate of Registration (if Partnership)
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Certificate of Registration (if Proprietary Concern)
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Certificate of Establishment of Firm/Company
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Certified Khasra (Land Record Ownership Document)
✦
Site Map
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Registered Sale Deed or Lease Deed (Title Copy)
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Project Report
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Certificate from HRACC (if Applicable)
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Certificate from Town and Country Planning (TNCP)
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Map Sanctioned by the Local Authority (Municipal Corporation, Municipality, etc.)
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Building Permission Granted by the Appropriate Authority
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Approved Floor Plan
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Completion Certificate from Competent Authority
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Total Project Cost Certificate Certified by a Certified Engineer/Valuer
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Total Capital Cost Certificate Certified by a Chartered Accountant
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Debt Details from Concerned Financial Institution
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Proof of Date of Commercial Operation (Copy of First Lodging Bill, Catering Bill, or Bill of Service Provided)
✦
Photographs of the Unit/Project from 03 Different Angles
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Cancelled Cheque of the Firm/Company
✦
Copy of PAN Card
✦
Copy of Photo ID Proof (Aadhaar Card/Voter ID/Passport, etc.)

✦ Required ◦ Optional

How to Apply

IIn-person

Registration Process

Step 1: The applicant must visit the Madhya Pradesh Government's Invest Portal, and initiate the registration process as a "Vendor / Investor".

Step 2: The applicant must fill in the basic information section by selecting the appropriate "Type of Organisation" from the available options, which include Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, and Individual. The applicant must enter the "Firm/Company Name" and the "Authorized Person Name" to establish the identity of the entity.

Step 3: The applicant must enter a valid email ID and mobile number. The Application Number, User ID, password, and all other important communications will be sent to this registered email ID.

Step 4: The applicant must complete the basic registration form submission. The system generates a User ID and password, which are shared directly with the applicant's registered mobile number.

Step 5: The authorized person logs in to the portal using the User ID and password received on the registered mobile number to process the company's activities. After the initial login, the applicant must update their profile to complete the full registration process before proceeding to apply for the scheme.

Application Process

Step 1: The applicant must apply for and secure mandatory permissions through the online single-window system within the stipulated time frames. Then, the applicant must do the following -

Complete the construction, ensuring the minimum capital expenditure of ₹5,00,00,000/- is met.
Commence commercial operations and gather proof of operation.

Step 2: The applicant must submit the capital subsidy application online within one year from the date of commencement of operation. Upload all required documents, ensuring all files meet the specified format requirements (e.g., JPG for photos).

Step 3: The Tourism Department/Board verifies the application and documents and processes the subsidy claim.

Quick Info

Level: Central Government
Max benefit: ₹2.0 Cr