Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category

The Tourism Department, Government of Madhya Pradesh, administers the Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category. The scheme supports the expansion of tourism infrastructure and encourages private investment in hospitality. Madhya Pradesh, known for its cultural heritage, wildlife, and natural landscapes, aims to draw entrepreneurs into setting up new hotels and mini resorts of a standard category. The capital subsidy reduces the initial financial load on investors, promoting the development of quality accommodation. Only new establishments qualify, ensuring that added capacity improves the tourist experience across the state.

The programme contributes to economic growth and generates employment for local residents. By supporting the construction and operation of new hospitality units, the government seeks to raise Madhya Pradesh's appeal for domestic and international visitors. The Madhya Pradesh Tourism Board implements the scheme, managing applications and disbursements while enforcing the prescribed guidelines. The emphasis on fixed capital investment reflects a commitment to durable, long-term infrastructure in the tourism sector.

The application procedure consists of an initial online registration followed by a separate subsidy application, both handled through the Madhya Pradesh Government's Invest Portal.

- **Step 1: Portal Registration (Vendor / Investor)**: Start by accessing the Madhya Pradesh Government's Invest Portal (sws.invest.mp.gov.in) and registering as a 'Vendor / Investor'. This portal serves as a unified point for multiple investor services. You must supply basic details, such as the 'Type of Organisation' (for instance, Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, or Individual), 'Firm/Company Name', and 'Authorized Person Name'. - **Step 2: Contact Information Entry**: Provide a working email address and mobile number. All essential correspondence, including the application number, user ID, and password, will be delivered to these contact points. Check that emails do not land in the spam folder. - **Step 3: Basic Registration Submission**: File the basic registration form. No fee is charged for this step. Once submitted successfully, a User ID and password are created and sent to the registered mobile number for login. - **Step 4: Profile Update and Full Registration**: The authorised person must sign in to the portal with the issued credentials. After the first login, updating the profile is required to finish the full registration before any scheme application can be made. - **Step 5: Secure Mandatory Permissions & Commence Operation**: Following full registration, you must apply for and obtain all required permissions through the online single-window system within the prescribed timelines. It is essential to finish constructing the hotel/resort, ensuring the minimum capital expenditure of ₹2,00,00,000/- is reached. After construction, begin commercial operations and retain evidence of operation, such as the initial lodging or catering invoice. - **Step 6: Online Subsidy Application**: File the capital subsidy application online within one year of the date commercial operations start. All supporting documents, including proof of capital expenditure, operational commencement, and other compliance certificates, must be uploaded in the specified file formats (e.g., JPG for photographs).

The Madhya Pradesh Tourism Department or Board verifies applications for the Capital Investment Subsidy after submission with the required documents. The review confirms the capital expenditure incurred, the start of commercial operations, compliance with the employment condition (70% MP residents), and adherence to facility standards, including the number of AC rooms. Once verification and approval are complete, the subsidy claim is processed and disbursed to the eligible unit.