Scheme of Financial Assistance to IHMs/FCIs/IITTM/ICI/NCHMCT/PSUs
Ministry: Ministry Of Tourism
Department: Ministry of Tourism
The scheme aims to provide Central Financial Assistance for setting up, expanding, upgrading, and replacing equipment for institutions involved in tourism and hospitality education and capacity building. Benefits include capital grants for construction and equipment.
About This Scheme
Benefits
₹60.0 L
◦ CFA for civil works is limited to ₹60,00,000/-.
##### A. Financial Ceilings for Projects
Setting up a new State Institute of Hotel Management (SIHM):
₹12.5 Cr
◦ Maximum Central Financial Assistance ceiling is ₹12,50,00,000/-.
₹10.0 Cr
◦ Construction ceiling is ₹10,00,00,000/-.
₹2.5 Cr
◦ Equipment purchase ceiling is ₹2,50,00,000/-.
₹4.0 Cr
◦ Additional financial assistance for construction of Hostel Block is up to ₹4,00,00,000/-.
Setting up a SIHM in an existing Building:
₹6.0 Cr
◦ Central Financial Assistance (CFA) for the academic block construction is limited to ₹6,00,00,000/- or 75% of the construction cost, whichever is less.
₹2.0 Cr
◦ Maximum financial assistance for construction of a hostel is ₹2,00,00,000/-.
₹2.0 Cr
◦ Maximum financial assistance for purchase of equipment is ₹2,00,00,000/-.
Setting up a new Food Craft Institute (FCI) by State Government/Union Territory Administration:
₹5.5 Cr
◦ Over-all ceiling is ₹5,50,00,000/-.
₹4.3 Cr
◦ Construction of building ceiling is ₹4,35,00,000/-.
₹1.1 Cr
◦ Equipment ceiling is ₹1,15,00,000/-.
₹2.0 Cr
◦ Additional financial assistance for hostel facilities is up to ₹2,00,00,000/-.
Setting up a FCI in an existing Building:
₹2.8 Cr
◦ Central Financial Assistance for the construction of the academic block is limited to ₹2,80,00,000/- or 75% of the construction cost, whichever is less.
₹1.1 Cr
◦ Financial assistance for purchase of equipment is up to ₹1,15,00,000/-.
Applied Training Centre (ATC) attached to Central IHMs:
₹5.0 Cr
◦ Assistance is up to a maximum of ₹5,00,00,000/- for construction.
Promotional Initiatives (Broad-basing for Public Sector Undertaking - PSU):
₹2.4 Cr · one-time
◦ One-time Central Financial Assistance is not to exceed ₹2,40,00,000/-.
₹1.8 Cr
◦ CFA for Heavy & Small Equipment, Furniture & Fixtures is limited to ₹1,80,00,000/-.
##### B. Adjustment and Flexibility
Inter-component adjustments of assistance ceilings (for construction of academic block, hostels, and purchase of equipment) are allowed subject to a maximum of 10%.
Such adjustments are allowed only on a case-to-case basis as a pre-sanction dispensation, and no flexibility is allowed after the project is sanctioned.
##### C. Fund Disbursement and Conditions
Funds will be released via the Central Nodal Agency (CNA), which is the National Council for Hotel Management & Catering Technology (NCHMCT). The CNA maintains a bank account in State Bank of India (SBI). The Implementing Agency (sub-agency) opens a zero-balance account in SBI and draws funds to the extent of authorization given by the Ministry on a real-time basis.
₹10.0 L
Maximum Central Financial Assistance up to ₹10,00,000/- shall be provided immediately upon sanction of the project to meet expenditure for preparatory activities.
₹10.0 L
First Installment: The first installment of fund, equaling 40% of the sanctioned amount, would be released after adjusting the preparatory fund of ₹10,00,000/-, once the tender process is completed.
Subsequent Installments: The balance amount would be released in different tranches of 40% and 15%.
Final Installment: The final installment of 5% would be released only after the completion of all civil works and submission of required documents like the completion certificate and display of credit to the Ministry.
Release: The first installment of grant will be released only after the land is transferred in the name of the society (as stipulated) and the contract is awarded by the implementing agency. Subsequent installments will be released only after a Utilization Certificate (UC) for at least 75% of the previous installment(s) is furnished.
₹20.0 L
Renewal/Continuation: Fresh requests for Central Financial Assistance for major maintenance/renovation (where the estimated expenditure is above ₹20,00,000/-) will only be entertained after a period of five years from the date of sanctioning of the previous grant for that purpose.
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Required Documents
- ✦Detailed Project Report (to Be Submitted by the State Government).
- ✦Society Registration Document Under the Societies Registration Act 1860 (for IHM/FCI/SIHM).
- ✦Land Transfer Documents in the Name of the Society.
- ✦Written Record of Reasons for Difficulties to Transfer the Land to the Society (if Land Not Transferred to Society).
- ✦Undertaking Regarding Adherence to Academic/Admission Norms Prescribed by National Council for Hotel Management & Catering Technology (NCHMCT) (for IHM/SIHM Setup).
- ✦Certification of Suitability of the Building by National Council for Hotel Management & Catering Technology (for Setting Up IHM in Existing Building, After Site Inspection).
- ✦Proposals for Additions/Alterations/New Components with Complete Details Along with Cost on Each Component, Duly Approved by the Building Committee and Board of Governors (for Projects with Central Financial Assistance from Ministry of Tourism).
- ✦Award of Contract by the Implementing Agency (Required for Release of First Installment).
- ✦Utilization Certificate (UC) of at Least 75% of the Previous Installment(s).
- ✦Supporting Documents Like Physical Progress, Expenditure Statement, Audited Accounts (to Accompany Utilization Certificates).
- ✦Justification for Additional Funds Due to Cost Escalation, With Approval of the Building Committee and Board of Governors (if Applicable).
- ✦Completion Certificate (Required for Final 5% Installment).
- ✦Documentation Regarding Display of Credit (Required for Final 5% Installment).
✦ Required ◦ Optional
How to Apply
The applicant must ensure that the Central Government, State Government, or Union Territory Administration forms a relevant Society (Institute of Hotel Management/Food Craft Institute/State Institute of Hotel Management) and registers it under the Societies Registration Act 1860 before the proposal is considered. Simultaneously, the State Government/Union Territory Administration concerned must transfer a requisite piece of developed land, free from all encumbrances, measuring the minimum requir
Quick Info
- Level
- Central Government
- Max benefit
- ₹12.5 Cr