MySubsidy

Capital Subsidy for Heritage Hotel under Proprietorship

Tourism Department, Government of Madhya Pradesh · Central government

A 15% capital subsidy (up to ₹2 crore) on fixed investment funds proprietors establishing heritage hotels in Madhya Pradesh, via the Tourism Department.

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

Key facts

Subsidy amount
₹45,00,000 – ₹2,00,00,000
Instrument
Subsidy
Deadline
Rolling
Disbursement
Reimbursed after spend

About this scheme

The Tourism Department, Government of Madhya Pradesh, introduced the 'Capital Subsidy for Heritage Hotel under Proprietorship' scheme to draw private investment into the state's heritage tourism sector. Its objective is to conserve and showcase Madhya Pradesh's cultural heritage by supporting the creation and growth of heritage hotels. The scheme extends financial support to proprietorship firms, encouraging entrepreneurship and employment in the hospitality industry.

A capital subsidy is provided to ease the burden of fixed capital expenditure needed for building quality heritage tourism infrastructure. The programme targets individual entrepreneurs keen on enhancing the state's tourism offering. Implementation rests with the Madhya Pradesh Tourism Board, which ensures smooth delivery and oversight of eligible ventures. Applications are submitted through state investment portals, keeping the process straightforward for qualifying proprietors.

Who can apply

Eligible business forms
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 be a Proprietorship firm. - Project must qualify as a 'Heritage Hotel' under the Tourism Project category. - Minimum capital expenditure of ₹3,00,00,000/- is required. - Project must be established and operationalised within the policy's operative tenure. - Application must be submitted within 1 year from the date of commencement of operation. - Investment claimed for subsidy must be made not prior to 3 years from operation commencement (or 5 years if project executed in one go). - Investment Promotion Assistance cannot be claimed alongside this subsidy.

How to apply

**Step 1: Registration** - Begin by accessing the Madhya Pradesh Government's Invest Portal at https://sws.invest.mp.gov.in/. - Complete the registration as a 'Vendor / Investor', providing basic details such as 'Type of Organisation' (choose Proprietorship Firm), 'Firm/Company Name', and 'Authorized Person Name'. - Supply a working email address and mobile number; these will be used to send your Application Number, User ID, and password. - Submit the basic registration form; there is no fee for this step. - Sign in with the credentials you receive, then fill out your profile to finish the full registration.

**Step 2: Project Completion & Permissions** - Obtain every mandatory permission via the online single-window system. - Finish building the Heritage Hotel, ensuring that the minimum capital expenditure of ₹3,00,00,000/- is met. - Start commercial operations and retain evidence, for instance, the first bill for lodging or catering.

**Step 3: Subsidy Application** - File the capital subsidy application online through the portal, making sure it is done within one year of the date operations began. - Attach all necessary documents, following the prescribed format requirements.

**Step 4: Verification and Disbursal** - The Tourism Department/Board will examine the application and supporting documents, after which the subsidy claim will be processed.

Apply on the issuer's site

How applications are assessed

The Madhya Pradesh Tourism Department/Board verifies each application against the eligibility criteria, validates the fixed capital investment, and confirms the operational status of the project. After all submitted documents and project details are checked for compliance with the scheme guidelines, the subsidy claim is cleared for disbursal.

Frequently asked questions

What is the maximum subsidy I can receive?

The maximum capital subsidy under this scheme is ₹2,00,00,000 (₹2 crore).

What is the minimum investment required?

Applicants must spend at least ₹3,00,00,000/- (₹3 crore) on capital expenditure for their heritage hotel project to qualify for the subsidy.

Who is eligible to apply for this scheme?

The scheme is open only to proprietorship firms setting up a Heritage Hotel as a tourism project in Madhya Pradesh.

Is the subsidy repayable?

The subsidy is repayable under certain conditions. If the unit stops operating within three years of receiving it, a portion must be refunded—80% if closed within one year, 60% within two years, and 50% within three years.

How do I apply for the capital subsidy?

Applications are submitted online via the Madhya Pradesh Government's Invest Portal. The application must generally be filed within one year of the date on which the heritage hotel begins commercial operations.

Sectors

  • Travel Tourism
  • Heritage Hotels
  • Tourism
  • Capital Subsidy
  • Madhya Pradesh
  • Proprietorship

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