Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort

The Department of Tourism, Government of Madhya Pradesh, administers the Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort. Under this scheme, a capital investment subsidy of 15% is offered on fixed capital investment, capped at ₹5,00,00,000/-. Applicants are required to invest a minimum of ₹10,00,00,000/- in capital expenditure and must set up at least 50 lettable air-conditioned rooms. The Madhya Pradesh Tourism Board implements the scheme, and applications are submitted online via the state's investment portal.

The initiative is designed to strengthen tourism infrastructure in Madhya Pradesh by encouraging private investment in premium accommodation. The subsidy is intended to improve the financial feasibility of large-scale hotel projects, ensuring that new developments adhere to prescribed quality benchmarks, including the minimum room count and capital outlay. This approach supports the state's broader economic objectives by generating employment, stimulating local economies, and promoting sustainable growth within the hospitality sector. The Madhya Pradesh Tourism Board manages the application process and oversees disbursals.

The application process for the Capital Investment Subsidy scheme is carried out in two phases: an initial online registration, followed by the submission of the formal application.

- **Step 1: Register on the Invest Portal.** Applicants must go to the Invest Portal of the Madhya Pradesh Government (https://sws.invest.mp.gov.in/) and register as a "Vendor / Investor." This portal serves as a unified platform for investor-facing services. At this stage, details such as the "Type of Organisation" (Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, or Individual), "Firm/Company Name," and "Authorized Person Name" are required. - **Step 2: Provide Contact Details for Verification.** A working email address and mobile number are necessary, since the Application Number, User ID, and password are all sent to the registered email. Applicants should check that these messages do not land in the spam folder. - **Step 3: Submit Basic Registration.** Once the required information is entered, the form is submitted. This initial registration does not attract any fee. After submission, a User ID and password are issued to the registered mobile number. - **Step 4: Log In and Complete the Profile.** Using the credentials received, the authorised person must log in. Updating the profile is a compulsory step to finish the registration before any scheme application can be made. - **Step 5: Obtain Permissions and Start Operations.** Before applying for the subsidy, the applicant must secure all necessary permissions through the online single-window system within the prescribed time limits. In parallel, construction of the hotel/resort must be finished, the minimum capital expenditure of ₹10,00,00,000/- must be met, and commercial operations must begin. Evidence of operation, such as the first lodging or catering bill, should be kept. - **Step 6: File the Subsidy Application Online.** The capital subsidy application must be submitted through the Invest Portal within one year of the date operations commence. All supporting documents need to be uploaded in the required formats (for instance, JPG for photographs). - **Step 7: Verification and Processing.** The Tourism Department/Board reviews the application and attached documents before the subsidy claim is processed.

The Madhya Pradesh Tourism Department/Board verifies the application and its supporting documents. The review checks that the project meets the eligibility criteria, including the minimum capital expenditure, the hotel or resort’s category and room count, and the date commercial operations began. Only private investors whose projects satisfy these conditions receive the capital subsidy.