MySubsidy

Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease

Tourism Department, Government of Madhya Pradesh · Central government

The Madhya Pradesh Tourism Department scheme funds private investors with a 15% capital subsidy (up to ₹5 crore) for heritage hotels on leased government assets.

Open, rolling. Applications are accepted continuously — there is no deadline.

Key facts

Subsidy amount
₹1,50,00,000 – ₹5,00,00,000
Instrument
Subsidy
Deadline
Rolling
Disbursement
Reimbursed after spend

About this scheme

The Tourism Department, Government of Madhya Pradesh, administers the "Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease" scheme. Its objective is to involve the private sector in conserving and operating government-owned heritage properties by converting them into heritage hotels. This approach aims to protect cultural assets while generating economic activity through tourism.

The scheme provides a capital investment subsidy of 15% of the fixed capital investment made by the private sector, subject to a ceiling of ₹5,00,00,000/-. Applicants must undertake a minimum capital expenditure of ₹10,00,00,000/- for projects approved by the department. The Madhya Pradesh Tourism Board manages the scheme's implementation and operational support. Applications are submitted through the State Government’s Invest Portal, which serves as a single-window interface for investors. The programme seeks to attract private investment, utilise heritage assets for tourism, and create sustainable economic opportunities in Madhya Pradesh.

Who can apply

Eligible business forms
Private limited company, Limited liability partnership, Sole proprietorship, Partnership firm
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 establish a Heritage Hotel project. - Heritage Assets must be obtained from the Tourism Department on a lease basis. - Minimum capital expenditure of ₹10,00,00,000/- must be incurred, as approved by the department. - Applicant must be a private investor (proprietary concern, partnership firm, company, or other legal entity). - Heritage asset must be obtained through the open bidding process conducted by the Empowered Committee. - Project must be executed and operated in one go, or capital expenditure incurred up to 05 years prior to commencement will be considered. - Project must be certified as a heritage hotel by the Tourism Department based on framed rules and procedures.

How to apply

- **Step 1: Registration on Invest Portal.** Begin by accessing the Madhya Pradesh Government's Invest Portal (https://sws.invest.mp.gov.in/) and complete the registration as a "Vendor / Investor." Provide the necessary details, choosing the correct "Type of Organisation" (such as Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, or Individual). Enter the precise firm/company name and authorised person's name, along with a functional email address and mobile number for all future correspondence. After submission, the system will send a User ID and password to your registered mobile number. - **Step 2: Complete Profile and Secure Permissions.** Use the credentials received to log in and finish your profile, thereby completing the full registration. Next, apply for and obtain all required permissions through the online single-window system within the designated time limits. Ensure the construction of your heritage hotel is finished, with a minimum capital expenditure of ₹3,00,00,000/- met, and begin commercial operations, retaining evidence such as the initial lodging or catering invoice. - **Step 3: Submit Capital Subsidy Application.** File the capital subsidy application online within one year of the date commercial operations commence. Attach all necessary documents in the prescribed formats (for instance, JPG for photographs). - **Step 4: Verification and Disbursement.** The Tourism Department/Board will examine your application and the accompanying documents, after which the subsidy claim will be processed for payment.

Apply on the issuer's site

How applications are assessed

The Madhya Pradesh Tourism Department/Board verifies applications and their supporting documents before any subsidy is released. Claims are processed only after the department certifies that all conditions—such as the minimum capital expenditure and the start of commercial operations—have been satisfied. Further checks, which may involve site inspections or document reviews, are carried out to confirm that the business has operated continuously for the required duration.

Frequently asked questions

What is the primary objective of this scheme?

The scheme incentivises private investment in conserving and operating government-owned heritage properties by converting them into heritage hotels, supporting tourism and economic growth in Madhya Pradesh.

What is the maximum capital subsidy I can receive?

The scheme offers a capital investment subsidy of 15% on fixed capital investment, capped at ₹5,00,00,000 (₹5 crore).

Are there any additional subsidies available?

Yes, entrepreneurs from the SC/ST category with 100% ownership qualify for an extra 5% capital investment subsidy. Projects set up in distant and ulterior areas are likewise eligible for an additional 5% Capital Investment Subsidy.

What is the minimum investment required to be eligible?

The project must involve a minimum capital expenditure of ₹10,00,00,000/- (₹10 crore), as approved by the department.

When can I apply for the subsidy?

Submit the capital subsidy application online within one year of your heritage hotel project commencing commercial operations, after meeting the minimum capital expenditure and obtaining all required permissions.

What happens if my unit closes after receiving the subsidy?

If the unit closes within 1 year of receiving the subsidy, 80% of the amount must be refunded; this falls to 60% within 2 years and 50% within 3 years. The unit must operate continuously for at least three years.

Sectors

  • Travel Tourism
  • Heritage Hotel
  • Tourism
  • Madhya Pradesh
  • Capital Subsidy
  • Private Investment

Details last verified on 3 August 2026. Source: the issuer's published information.