Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel
Tourism Department, Government of Madhya Pradesh · Central government
Madhya Pradesh Tourism Department offers a 15% capital investment subsidy, up to ₹5 crore, to existing hotels, resorts and heritage properties in the state for expansion.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹5,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Madhya Pradesh Tourism Department, Government of Madhya Pradesh, operates the Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel. Through incentives for private investment, the scheme supports existing tourism accommodation units in expanding their operations within the state.
Under the scheme, a capital investment subsidy of 15% is offered on fixed capital investment, subject to a maximum ceiling of ₹5,00,00,000/-. To qualify, applicants must demonstrate an expansion of no less than 50% in the staying capacity of the established unit.
The Madhya Pradesh Tourism Board implements the scheme, and applications are submitted online via the Madhya Pradesh Government's Invest Portal.
By supporting growth and development in the hospitality industry, the initiative seeks to strengthen Madhya Pradesh's tourism sector, draw more tourists and create economic opportunities. Its long-term objective is to establish Madhya Pradesh as a premier tourist destination through improved infrastructure.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Madhya Pradesh
- The applicant must operate an established Star, Deluxe, or Standard Hotel, Resort, or Heritage Hotel. - The applicant must make a capital expenditure of at least ₹1,00,00,000/-, as approved by the department. - The applicant must achieve an expansion of staying capacity of at least 50% to qualify for the subsidy. - The applicant must secure the required certification of heritage hotels/tourism projects from the Tourism Department. - The applicant must file the capital subsidy application within 1 year from the date of commencement of operation. - Investment made earlier than 3 years before the date of commencement of operation is not counted towards the capital subsidy.
How to apply
**Registration Process:**
- Go to the Madhya Pradesh Government's Invest Portal (https://sws.invest.mp.gov.in/) and sign up under the category "Vendor / Investor". - Provide the basic details sought, namely "Type of Organisation", "Firm/Company Name", "Authorized Person Name", a valid email ID and mobile number. - Submit the basic registration form. A User ID and password will be dispatched to the mobile number you registered. - Use that User ID and password to log in to the portal, then update your profile so that registration is complete.
**Application Process:**
- Through the online single-window system, apply for and obtain the permissions that are mandatory. - Finish construction, making sure capital expenditure reaches a minimum of ₹1,00,00,000/-. - Begin commercial operations and collect evidence that operations have started. - File the capital subsidy application online no later than one year from the date operations commenced. - Upload every document that is required, in the formats specified. - The Tourism Department/Board will scrutinise the application and documents, and thereafter take the subsidy claim forward for processing.
How applications are assessed
The Tourism Department or Board examines the application and the supporting documents filed by the applicant, checking them against the eligibility criteria and conditions laid down under the scheme. After this scrutiny is complete, the subsidy claim is taken forward for processing and the funds are released in line with the programme guidelines. Such verification ensures that the subsidy for expansion projects reaches only eligible units, thereby upholding the scheme's purpose and integrity.
Frequently asked questions
What is the primary objective of this scheme?
The scheme offers incentives to private investors so that existing tourism accommodation units in Madhya Pradesh — Star, Deluxe or Standard hotels, resorts and heritage hotels — can expand.
What is the maximum subsidy available?
The capital investment subsidy is capped at ₹5,00,00,000 (₹5 crore).
What is the minimum expansion required for eligibility?
The established unit must increase its staying capacity by a minimum of 50%.
What is the application deadline?
Submit the capital subsidy application online within one year of commencing operations.
What happens if the unit closes after availing the subsidy?
A unit that shuts down within one year must return 80% of the subsidy, within two years 60%, and within three years 50%.
Sectors
- Travel Tourism
- Tourism
- Hospitality
- Hotel Expansion
- Capital Subsidy
- Madhya Pradesh
Details last verified on 18 September 2026. Source: the issuer's published information.