MySubsidy

Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation

Madhya Pradesh Tourism Board · Central government

The Madhya Pradesh Tourism Board's scheme funds existing hotels and resorts with a capital subsidy for renovation and upgradation to Deluxe or 4-star and higher categories.

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

Key facts

Subsidy amount
Not specified
Instrument
Subsidy
Deadline
Rolling
Disbursement
Reimbursed after spend

About this scheme

The Department of Tourism, Government of Madhya Pradesh, administers the "Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation" scheme. Its purpose is to encourage private investment in tourism by supporting existing hotels and resorts in the state to upgrade to Deluxe or higher classification. The scheme offers a capital subsidy as per tourism policy guidelines, with eligibility tied to specific investment and capacity thresholds.

Applicants must be operational hotel or resort units planning substantial capital expenditure of either ₹10 crore or ₹25 crore, depending on the target upgradation category. Implementation is handled by the Madhya Pradesh Tourism Board, and applications are submitted online through the state government's Invest Portal.

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 be an existing Standard Hotel or Mini Resort for Category A upgradation. - Upgraded facility must meet criteria for Deluxe Hotels (minimum 50 rooms) or Resorts (minimum 20 rooms) for Category A. - Minimum capital investment of ₹10,00,00,000 required for Category A. - Applicant must be an existing Deluxe Hotel or Resort for Category B upgradation. - Upgraded facility must meet criteria for 4-star or higher category Hotels (minimum 75 rooms) or Resorts (minimum 25 rooms) for Category B. - Minimum capital investment of ₹25,00,00,000 required for Category B. - Subsidy claimable only on capital investment made after the policy's enforcement. - Application must be submitted within 1 year from the date of commencement of operation. - Cannot claim Investment Promotion Assistance if claiming capital subsidy under this policy.

How to apply

- **Registration Process:** - Go to the Madhya Pradesh Government's Invest Portal (https://sws.invest.mp.gov.in/) and initiate registration under the "Vendor / Investor" category. - Enter the necessary details, choosing the "Type of Organisation" (such as Public Limited, Private Limited, or Proprietorship), along with the "Firm/Company Name" and "Authorized Person Name." - Furnish a functional email address and mobile number for all correspondence. - Complete the basic registration form to obtain a User ID and password, which are delivered to your registered mobile number. - Access the portal using the credentials provided, then complete your profile to finalise the registration. - **Application Process:** - Obtain all requisite permissions through the online single-window mechanism. - Finish the construction phase, ensuring the minimum capital expenditure (₹10 crore or ₹25 crore) is fulfilled. - Begin commercial operations and gather evidence of operational activity. - File the capital subsidy application online within one year of the operational start date, attaching all necessary documents in the prescribed formats. - The Tourism Department/Board will review the application and supporting documents, after which the subsidy claim is processed.

Apply on the issuer's site

How applications are assessed

The Madhya Pradesh Tourism Department/Board verifies applications and supporting documents to confirm adherence to the scheme’s eligibility criteria, investment milestones, and operational commencement. Approval is granted only when these conditions are met, in line with the tourism policy guidelines.

Frequently asked questions

What is the purpose of this scheme?

The scheme supports private investment to renovate, modernise, and upgrade existing hotels and resorts in Madhya Pradesh into Deluxe or higher category establishments.

Who is eligible to apply for this subsidy?

Existing Standard Hotels or Mini Resorts may apply under Category A to upgrade to Deluxe, while existing Deluxe Hotels or Resorts may apply under Category B to upgrade to 4-star or higher, subject to specific room count and investment criteria.

What are the minimum investment requirements?

A minimum capital investment of ₹10 crore is required for Category A upgradation, and ₹25 crore for Category B upgradation.

Is there an additional subsidy for certain locations?

Yes, tourism projects in distant and ulterior areas of Madhya Pradesh can receive an additional 5% Capital Investment Subsidy.

When should the application for the subsidy be submitted?

The application must be submitted online within one year from the date of commencement of commercial operations after upgradation.

What happens if a unit closes after availing the subsidy?

A unit must operate for at least three years. If it closes within the first, second, or third year, 80%, 60%, or 50% of the subsidy, respectively, must be refunded.

Sectors

  • Travel Tourism
  • Tourism
  • Hospitality
  • Hotel Upgradation
  • Capital Subsidy
  • Madhya Pradesh

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