Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel
Tourism Department, Government of Madhya Pradesh · Central government
The Madhya Pradesh Tourism Department offers a 15% capital investment subsidy (up to ₹5 crore) to expand existing hotels, resorts, and heritage properties.
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, administers the Capital Investment Subsidy for Expansion of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel scheme. Its purpose is to promote private investment in the state by supporting the growth of existing tourism accommodation units. Under the scheme, a capital investment subsidy of 15% is offered against fixed capital investment, subject to a maximum ceiling of ₹5,00,00,000/-. To qualify, applicants must increase the staying capacity of their established unit by at least 50%.
Implementation is handled by the Madhya Pradesh Tourism Board, with applications submitted online via the Madhya Pradesh Government's Invest Portal. The scheme seeks to strengthen the hospitality industry in Madhya Pradesh, attract more visitors, and create economic opportunities. Over the long term, it aims to improve tourism infrastructure and establish the state as a leading destination.
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
- Applicant must operate an established Star, Deluxe, or Standard Hotel, Resort, or Heritage Hotel. - Minimum capital expenditure of ₹1,00,00,000/- must be incurred, as approved by the department. - Expansion must result in at least 50% increased staying capacity. - Certification of heritage hotels/tourism projects must be obtained from the Tourism Department. - Application for capital subsidy must be submitted within 1 year from the date of commencement of operation. - Investment made prior to 3 years from the date of commencement of operation is excluded from the capital subsidy calculation.
How to apply
- **Registration Process:** - Go to the Madhya Pradesh Government's Invest Portal (https://sws.invest.mp.gov.in/) and sign up as a "Vendor / Investor". - Provide essential details such as "Type of Organisation", "Firm/Company Name", "Authorized Person Name", a valid email address, and mobile number. - Submit the basic registration form; a User ID and password will be sent to the registered mobile number. - Access the portal with the provided User ID and password, then complete your profile to finish full registration. - **Application Process:** - Obtain all necessary permissions by applying through the online single-window system. - Finish construction, ensuring the minimum capital expenditure of ₹1,00,00,000/- is fulfilled. - Start commercial operations and collect evidence of operation. - File the capital subsidy application online within one year from the date operations begin. - Attach all required documents, ensuring they comply with the specified format requirements. - The Tourism Department/Board will review the application and documents, then proceed with the subsidy claim.
How applications are assessed
The Tourism Department/Board examines the application and accompanying documents to confirm that the applicant meets the scheme’s eligibility requirements and conditions. After this verification is complete, the subsidy claim is processed and payment is released in line with the programme’s guidelines. This procedure guarantees that only qualifying units obtain the subsidy for their expansion initiatives, thereby upholding the scheme’s purpose and safeguards.
Frequently asked questions
What is the primary objective of this scheme?
The scheme incentivises private investment to expand existing tourism accommodation units, including Star, Deluxe, Standard Hotel, Resort, and Heritage Hotel categories, in Madhya Pradesh.
What is the maximum subsidy available?
The maximum capital investment subsidy is ₹5,00,00,000 (₹5 crore).
What is the minimum expansion required for eligibility?
The established unit must increase its staying capacity by at least 50% to qualify.
What is the application deadline?
The capital subsidy application must be submitted online within one year of the date operations begin.
What happens if the unit closes after availing the subsidy?
If the unit shuts down within one year, 80% of the subsidy must be repaid; within two years, 60%; and within three years, 50%.
Sectors
- Travel Tourism
- Tourism
- Hospitality
- Hotel Expansion
- Capital Subsidy
- Madhya Pradesh
Details last verified on 3 August 2026. Source: the issuer's published information.