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 provided 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 establish at least 50 lettable air-conditioned rooms. The Madhya Pradesh Tourism Board implements the scheme, and applications are submitted online through the state's investment portal.

The initiative is designed to develop tourism infrastructure in Madhya Pradesh by encouraging private investment in premium accommodation. The subsidy aims to make large-scale hotel projects financially viable while ensuring compliance with quality benchmarks, such as 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 in the hospitality sector. The Madhya Pradesh Tourism Board oversees the application process and disbursal of funds.

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 begin by visiting the Invest Portal of the Madhya Pradesh Government (https://sws.invest.mp.gov.in/) and registering 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.** A functional email address and mobile number are necessary, as the Application Number, User ID, and password are communicated through these channels. Applicants should check that emails are not routed to the spam folder. - **Step 3: Submit Basic Registration.** Once the requisite information is entered, the form is submitted. This step does not attract any fee. Following submission, a User ID and password are dispatched to the registered mobile number. - **Step 4: Log In and Complete the Profile.** The authorised person must access the portal with the credentials received. Updating the profile is a prerequisite for full registration and must be done before any scheme application can be made. - **Step 5: Obtain Permissions and Start Operations.** Before applying for the subsidy, the applicant must secure all mandatory approvals through the online single-window system within the prescribed timelines. 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 retained. - **Step 6: File the Subsidy Application.** The capital subsidy application must be submitted online via the Invest Portal within one year of the date operations commence. Supporting documents are to be uploaded in the prescribed 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 once the capital subsidy request is submitted. The review checks that the project meets all eligibility conditions, including the minimum capital expenditure, the hotel or resort’s category and room count, and the date commercial operations began. Only private investors who satisfy these requirements are considered for the subsidy.