MySubsidy

Capital Subsidy for Heritage Hotel under Proprietorship

Tourism Department, Government of Madhya Pradesh · Central government

Madhya Pradesh's Tourism Department gives proprietors setting up heritage hotels a 15% capital subsidy, up to ₹2 crore, on fixed capital investment.

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. By supporting the setting up and growth of heritage hotels, the scheme seeks to conserve and promote Madhya Pradesh's cultural legacy. Proprietorship firms receive financial assistance under the scheme, which in turn encourages entrepreneurship and employment generation in the hospitality industry.

A capital subsidy is offered to partly cover the large fixed capital outlays involved in creating quality heritage tourism infrastructure. The scheme targets individual entrepreneurs who wish to contribute to the state's tourism landscape.

The Madhya Pradesh Tourism Board implements the scheme, which is intended to ensure efficient delivery and support for eligible projects. Applications are routed through state investment portals, keeping the process accessible for eligible 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

- The applicant should be a Proprietorship firm. - The project should qualify as a 'Heritage Hotel' under the Tourism Project category. - Capital expenditure of at least ₹3,00,00,000/- is required. - The project should be established and made operational within the policy's operative tenure. - The application should be filed within 1 year from the date of commencement of operation. - The investment for which subsidy is claimed should not have been made earlier than 3 years from the commencement of operation (or 5 years, where the project is executed in one go). - Investment Promotion Assistance cannot be claimed alongside this subsidy.

How to apply

- **Step 1: Registration** - Begin the registration process by going to the Madhya Pradesh Government's Invest Portal (https://sws.invest.mp.gov.in/). - Sign up as a 'Vendor / Investor', providing basic details such as 'Type of Organisation' (Proprietorship Firm), 'Firm/Company Name', and 'Authorized Person Name'. - Provide a valid email ID and mobile number, through which your Application Number, User ID, and password will be sent. - Submit the basic registration form (there is no fee). - Using the User ID and password generated, log in to the portal and complete your profile to finish full registration. - **Step 2: Project Completion & Permissions** - Through the online single-window system, apply for and obtain all mandatory permissions. - Finish construction of the Heritage Hotel, making sure a minimum capital expenditure of ₹3,00,00,000/- is met. - Start commercial operations and collect proof, such as the first lodging or catering bill. - **Step 3: Subsidy Application** - Within one year from the date of commencement of operation, submit the capital subsidy application online via the portal. - Upload all required documents, following the specified format requirements. - **Step 4: Verification and Disbursal** - The Tourism Department/Board will verify the application and documents, and then process the subsidy claim.

Apply on the issuer's site

How applications are assessed

The Madhya Pradesh Tourism Department/Board screens every application it receives. This check covers the eligibility criteria, verification of the fixed capital investment, and confirmation that the unit is operational. The subsidy claim moves forward for disbursal only after the documents and project details are found to meet the scheme guidelines.

Frequently asked questions

What is the maximum subsidy I can receive?

The scheme provides a capital subsidy of up to ₹2,00,00,000 (₹2 crore).

What is the minimum investment required?

To qualify for the subsidy, your heritage hotel project must involve capital expenditure of at least ₹3,00,00,000/- (₹3 crore).

Who is eligible to apply for this scheme?

Only proprietorship firms setting up a Heritage Hotel as a Tourism Project in Madhya Pradesh may apply for this scheme.

Is the subsidy repayable?

The subsidy is repayable on a conditional basis: should the unit shut down within three years of receiving it, part of the amount must be returned — 80% if closure occurs within one year, 60% within two years, and 50% within three years.

How do I apply for the capital subsidy?

Apply online via the Madhya Pradesh Government's Invest Portal, generally within one year of the heritage hotel commencing commercial operations.

Sectors

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

Details last verified on 18 September 2026. Source: the issuer's published information.