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
Madhya Pradesh Tourism Department scheme funding private investors with a 15% capital investment subsidy, up to ₹5 crore, for heritage hotels on leased government heritage 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, operates a capital investment subsidy scheme titled "Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease". Its purpose is to draw private participation into conserving and running government-owned heritage properties as heritage hotels, which supports both the upkeep of cultural assets and tourism-led economic activity.
Under the scheme, a subsidy of 15% is payable on fixed capital investment by the private sector, subject to a ceiling of ₹5,00,00,000/-. Applicants must commit a minimum capital expenditure of ₹10,00,00,000/- on projects approved by the department.
The Madhya Pradesh Tourism Board handles implementation and operations. Applications are routed through the State Government's Invest Portal, which serves as a single-window interface for investors.
The programme is intended to bring in private investment, put heritage assets to tourism use, and generate economic opportunities within Madhya Pradesh.
Who can apply
- Eligible business forms
- Not specified
- 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 set up a Heritage Hotel project. - The applicant must have taken the Heritage Assets on lease from the Tourism Department. - The applicant must spend a minimum capital expenditure of ₹10,00,00,000/-, as approved by the department. - The applicant must be a private investor — a proprietary concern, partnership firm, company, or other legal entity. - The applicant must have secured the heritage asset through the open bidding process run by the Empowered Committee. - The applicant must execute and operate the project in a single go; alternatively, capital expenditure incurred up to 05 years before commencement will be taken into account. - The Tourism Department must certify the project as a heritage hotel, in accordance with the framed rules and procedures.
How to apply
**Step 1: Register on the Invest Portal.** Begin by registering as a "Vendor / Investor" on the Madhya Pradesh Government's Invest Portal (https://sws.invest.mp.gov.in/). Provide the basic details, choosing the applicable "Type of Organisation" (such as Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, or Individual). Give the correct names of the firm/company and the authorised person, together with an email ID and mobile number that are valid and active, since all communications will be sent there. Once you submit the form, a User ID and password will be delivered to the mobile number you registered.
**Step 2: Finish Your Profile and Obtain Permissions.** Sign in to the portal with the credentials you received and update your profile so that the registration is complete. After that, apply for and obtain every mandatory permission through the online single-window system, doing so within the prescribed time limits. Finish building your heritage hotel, making sure the capital expenditure is at least ₹3,00,00,000/-, and start commercial operations, keeping proof such as the first lodging or catering bill.
**Step 3: File the Capital Subsidy Application.** File the capital subsidy application online no later than one year from the date commercial operations began. Make sure all documents required are uploaded in the formats specified (for instance, JPG for photographs).
**Step 4: Verification and Disbursement.** The Tourism Department/Board will check your application and the documents supporting it, and will then take the subsidy claim forward for disbursement.
How applications are assessed
The Madhya Pradesh Tourism Department/Board screens each application and its supporting documents before any subsidy is released. Claims move forward only after the applicant is certified as having satisfied every condition, among them the minimum capital expenditure and the start of commercial operations. To establish that the business has run without interruption for the required period, the department may also carry out site visits or examine further documentary evidence.
Frequently asked questions
What is the primary objective of this scheme?
The scheme encourages private investment in government-owned heritage properties by turning them into heritage hotels, which supports tourism and economic development 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?
Entrepreneurs from the SC/ST category holding 100% ownership qualify for an extra 5% capital investment subsidy. A further 5% capital investment subsidy applies to projects set up in distant and ulterior areas.
What is the minimum investment required to be eligible?
A minimum capital expenditure of ₹10 crore (₹10,00,00,000) on the project, as approved by the department, is required of applicants.
When can I apply for the subsidy?
For a heritage hotel project, the capital subsidy application has to be filed online within one year of the date commercial operations begin, once the minimum capital expenditure is met and the required permissions are in place.
What happens if my unit closes after receiving the subsidy?
The scheme requires the unit to remain operational for a minimum of three years, failing which the subsidy is recovered on a sliding scale: 80% if closure occurs within one year, 60% within two years, and 50% within three years of receiving the subsidy.
Sectors
- Travel Tourism
- Heritage Hotel
- Tourism
- Madhya Pradesh
- Capital Subsidy
- Private Investment
Details last verified on 18 September 2026. Source: the issuer's published information.