Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation

The Madhya Pradesh Department of Tourism runs a capital subsidy scheme for existing hotels that undertake renovation, modernisation or upgradation. The scheme is intended to draw private investment into the tourism sector and to help existing hotel and resort units in Madhya Pradesh reach a Deluxe or higher category rating.

Under the scheme, capital subsidy is granted in line with tourism policy guidelines for specified categories. To qualify, an applicant must be an existing hotel or resort unit making a substantial capital investment — either ₹10 crore or ₹25 crore — depending on the upgradation category sought. Minimum capital investment and capacity milestones must also be met.

The Madhya Pradesh Tourism Board implements the programme. Applications are submitted online through the Madhya Pradesh Government's Invest Portal.

**Registration Process:** - Go to the Madhya Pradesh Government's Invest Portal (https://sws.invest.mp.gov.in/) and begin registration under the "Vendor / Investor" category. - Enter the basic details, choosing the "Type of Organisation" (such as Public Limited, Private Limited or Proprietorship), along with the "Firm/Company Name" and "Authorized Person Name." - Give a valid email ID and mobile number, as all communications will be sent there. - Send in the basic registration form; a User ID and password will then be issued to your registered mobile number. - Use the User ID and password you received to sign in to the portal, and update your profile so that the full registration is completed.

**Application Process:** - Obtain every mandatory permission by applying through the online single-window system. - Finish the construction work, making sure the minimum capital expenditure (₹10 crore or ₹25 crore) is achieved. - Begin commercial operations and gather proof that operations have started. - File the capital subsidy application online within one year of the date on which operations commenced, attaching all required documents in the prescribed formats. - The Tourism Department/Board will check the application and documents, and thereafter take the subsidy claim forward for processing.

The Madhya Pradesh Tourism Department/Board checks each application and its supporting documents against the scheme's eligibility criteria, investment milestones and operational commencement requirements. Approval rests on whether these conditions, as laid down in the tourism policy guidelines, have been met.