Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel

About This Scheme

The scheme "Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel" was launched by the Madhya Pradesh Tourism Department, Government of Madhya Pradesh. The scheme aims to encourage the expansion of existing tourism accommodation units by incentivizing private investment in the state. The scheme provides a capital investment subsidy of 15% against the fixed capital investment, subject to a maximum ceiling of ₹5,00,00,000/-. The applicant must ensure an expansion of at least 50% in the staying capacity of the established unit to be eligible for the subsidy. The scheme is implemented by the Madhya Pradesh Tourism Board. The applications for this scheme are accepted online through the Madhya Pradesh Government's Invest Portal.

Eligibility

- The applicant must have an established Star, Deluxe, or Standard Hotel, Resort, or Heritage Hotel. - The applicant must incur a minimum capital expenditure of ₹1,00,00,000/- as approved by the department. - The applicant must ensure an expansion in terms of a minimum of 50% increased staying capacity to be eligible for the subsidy. - The applicant must obtain the necessary certification of heritage hotels/tourism projects from the Tourism Department to avail the exemptions/facilities. - The applicant must submit the application for capital subsidy within 1 year from the date of commencement of operation. - The applicant must ensure that the investment made prior to 3 years from the date of commencement of operation is not calculated for the capital subsidy.

Benefits

- The beneficiary is entitled to a Capital Investment Subsidy of 15% against the Fixed Capital Investment. - The maximum ceiling for the subsidy is ₹5,00,00,000/-. - The subsidy is granted for the expansion of established Star, Deluxe, Standard Hotels, Resorts, or Heritage Hotels. ##### *Conditions* - The unit must maintain continuous operation and submit a self-declaration on or before the 15th of April every year regarding the continuous operation of the unit for at least three years from the date of availing the subsidy. - If the unit closes within 1 year from the date of receipt of the subsidy, 80% of the subsidy amount has to be refunded. - If the unit closes within 2 years from the date of receipt of the subsidy, 60% of the subsidy amount has to be refunded. - If the unit closes within 3 years from the date of receipt of the subsidy, 50% of the subsidy amount has to be refunded.

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.