Grant of Financial Incentives for Hotels, Resorts, and Tourism Projects

About This Scheme

Launched in 2004, the scheme "Grant of Financial Incentives for Hotels, Resorts, and Tourism Projects" by the Department of Industrial Development (Tourism), Government of Puducherry, aims to encourage private entrepreneurs in the field of tourism by providing financial incentives for the development of hotels, resorts, heritage hotels, and other tourism-related projects. The scheme offers capital grants and subsidies to eligible projects, including star-classified hotels, heritage hotels, and tourism infrastructure like water theme parks, amusement parks, and convention centers. Eligible applicants include those who have financially invested in and developed tourism projects, with incentives ranging from ₹2,00,000/- per room for one-star hotels to 25% of the capital investment (up to ₹1,00,00,000/-) for higher-category projects. The scheme is implemented by the Department of Industrial Development (Tourism), Government of Puducherry.

Eligibility

- The scheme applies to star-classified hotels/resorts, heritage hotels, and other tourism projects completed and commissioned from 2005 onwards. - The project must be in continuous commercial operation. - The applicant must have financially invested in the property and developed the project. - The hotel/resort must have star classification or heritage classification approved by the Ministry of Tourism, Government of India. - The project must not have availed any other capital subsidy/incentive from the Government of Puducherry or the Government of India. - The project must continue in the same name and style for eight years from the date of release of the incentive.

Benefits

> Capital Grant for Star-Classified Hotels - ₹2,00,000/- per room, subject to a maximum of ₹30,00,000/- for one-star hotels. - ₹3,00,000/- per room, subject to a maximum of ₹75,00,000/- for two-star hotels. - ₹3,00,000/- per room, subject to a maximum of ₹1,00,00,000/- for three-star hotels. > Capital Grant for Heritage Hotels - ₹3,00,000/- per room, subject to a maximum of ₹75,00,000/-. - The building must be listed in the current list of heritage buildings in Puducherry and conform to architectural and conservation guidelines. > Capital Subsidy for Higher-Category Projects - 25% of the capital investment, subject to a maximum of ₹1,00,00,000/- for hotels/resorts with more than three-star classification and other tourism projects like water theme parks, amusement parks, yacht marinas, family entertainment centers, convention centers, and cruise tourism. > Service Apartments - ₹1,00,000/- per apartment, subject to a maximum of ₹6,00,000/- for 'Silver' category. - ₹2,00,000/- per apartment, subject to a maximum of ₹12,00,000/- for 'Gold' or higher category. > Mode of Disbursement The incentive is directly released to the authorized/approved financial institutions if a loan was taken for the project. If no loan was taken, the amount is released directly to the applicant. > Expected Time of Disbursement Priority for disbursement is based on the date of star classification/heritage classification or the date of commercial operation for other tourism projects.

How to Apply

Where This Comes From

This scheme was sourced from myScheme, the Government of India's official Central+State scheme discovery portal, and reviewed by an editor before publishing. Use the button above to read the full details and apply directly on the official source.