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

The Tourism Department, Government of Madhya Pradesh, operates the Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category. The scheme is intended to strengthen the state's tourism infrastructure and draw investment into the hospitality sector. Madhya Pradesh, which has cultural heritage, wildlife and natural surroundings, wants entrepreneurs to set up new standard-category hotels and mini resorts. A capital subsidy of significant size is offered to lower the financial load on investors, so that quality accommodation capacity expands across the state. Only new establishments are covered, which means the added infrastructure feeds into the tourist experience and capacity within Madhya Pradesh.

The scheme matters for economic development and job creation in the state, particularly for residents. By giving incentives for building and running new hospitality units, the government aims to make Madhya Pradesh a stronger draw for domestic and international tourists. The Madhya Pradesh Tourism Board implements the programme, handling applications and disbursement, checking compliance with the guidelines and supporting sustainable growth in tourism. The emphasis on fixed capital investment reflects the state's focus on physical, long-term infrastructure.

The route to the subsidy runs through two stages: first an online registration, then a separate application. Both are handled mainly via the Madhya Pradesh Government's Invest Portal.

- **Step 1: Register on the portal as a Vendor / Investor**: Start by opening the Madhya Pradesh Government's Invest Portal (sws.invest.mp.gov.in) and signing up under the 'Vendor / Investor' category. The portal serves as a common window for a range of investor services. You will be asked for basic details — the 'Type of Organisation' (for instance Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, or Individual), the 'Firm/Company Name', and the 'Authorized Person Name'.

- **Step 2: Provide contact details**: Enter an email ID and mobile number that are valid and in active use, taking care to get them right. The application number, user ID and password, along with every other important communication, will be delivered to the email and mobile number you register. Make sure your email settings do not divert these messages to spam.

- **Step 3: Submit the basic registration**: Send in the basic registration form. Nothing is charged for this step. Once it goes through successfully, a User ID and password are generated and sent to the registered mobile number so that you can log in.

- **Step 4: Update the profile and complete full registration**: The authorized person has to sign in to the portal with the credentials received. On the first login, updating the profile is compulsory — full registration must be completed this way before you can move on to applying for the scheme.

- **Step 5: Obtain the mandatory permissions and begin operations**: Once full registration is done, the applicant has to apply for and obtain every permission required, through the online single-window system, within the prescribed time frames. It is also essential to finish construction of the hotel/resort and ensure the minimum capital expenditure of ₹2,00,00,000/- is met. After construction, commercial operations must begin, and proof of operation — the first lodging or catering bill, for example — should be retained.

- **Step 6: Apply for the subsidy online**: The capital subsidy application has to be submitted online within one year from the date commercial operation commenced. Upload every document called for — proof of capital expenditure, proof of operational commencement, and other compliance certificates — in the file formats specified (JPG for photos, for example).

Once an online subsidy application is filed with all supporting documents, the Madhya Pradesh Tourism Department or Board carries out a detailed review. This covers verification of the capital expenditure incurred, confirmation that commercial operations have begun, compliance with the employment requirement of 70% MP residents, and adherence to facility standards concerning the number of AC rooms.

If the verification is successful and approval is granted, the subsidy claim is taken forward for processing and the capital investment subsidy is disbursed to the eligible unit.