Investment Promotion Assistance To Setup Large/Mega/Ultra-Mega Tourism Projects
Tourism Department, Government of Madhya Pradesh · Central government
Madhya Pradesh offers private entities up to ₹90 crore for large-scale tourism infrastructure, based on capital investment and jobs created.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- ₹3,00,00,000 – ₹90,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Paid in tranches
About this scheme
The Tourism Department, Government of Madhya Pradesh, operates the Investment Promotion Assistance to Setup Large/Mega/Ultra-Mega Tourism Projects scheme. Under it, private investors and legal entities making substantial capital investments in tourism receive financial incentives. The scheme's purpose is to support the creation of tourism projects — large hotels, resorts, theme parks and similar facilities — and in doing so generate employment for residents of Madhya Pradesh.
Projects are classified as Large, Mega or Ultra-mega. Each category carries its own capital expenditure and employment generation thresholds, and the assistance offered is structured around those thresholds.
Through these incentives for large-scale investment, the state government aims to strengthen Madhya Pradesh's standing as a tourist destination, raise the quality of the visitor experience, and support economic growth in local communities. The scheme forms part of the state's wider tourism policy and is intended to draw domestic and international investors into developing tourism infrastructure.
Who can apply
- Eligible business forms
- Not specified
- 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 must be a private entity — a Public or Private Limited Company, LLP, Partnership Firm, Proprietary Concern, Cooperative, Trust, FPO, or an Individual. - The project must satisfy the minimum capital expenditure and employment generation thresholds for its category: Large (₹10 crore investment, 50 residents of MP employed), Mega (₹50 crore investment, 100 residents of MP employed), or Ultra-mega (₹100 crore investment, 200 residents of MP employed). - The employment generated must be for residents of Madhya Pradesh. - Capital Subsidy under any other policy clause cannot be claimed for the same project. - Heritage Hotels qualify, with investment and employment criteria reduced by 50%. - To receive phase-wise incentives, projects must complete each phase within the stipulated timeline — 2 years for phase 1, 3 years for phase 2, and 5 years for the final phase.
How to apply
1. **Registration:** Go to the Madhya Pradesh Government's Invest Portal (https://sws.invest.mp.gov.in/) and register yourself under the category "Vendor / Investor". 2. **Basic Information:** Enter your basic particulars and choose the "Type of Organisation" that applies to you (Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO or Individual). Fill in the "Firm/Company Name" and "Authorized Person Name" fields. 3. **Contact Details:** Give a working email ID and mobile number. These will be used to send your application number, User ID, password and all other important communications. 4. **Registration Completion:** Submit the basic registration form. A User ID and password will be generated and sent to the mobile number you registered. 5. **Profile Update:** Use the credentials you received to log in to the portal, then update your profile so that the full registration is complete. Only after this should you apply for the scheme. 6. **Project Permissions & Completion:** Through the online single-window system, apply for and obtain every mandatory permission within the prescribed timeframes. Finish construction of the project, making sure the minimum capital expenditure requirement is satisfied, and begin commercial operations. 7. **Subsidy Application:** File the capital subsidy application online within one year from the date on which commercial operations commence. Upload every required document, and check that each one is in the format specified (for instance, photographs must be in JPG). 8. **Verification & Processing:** The Tourism Department/Board will verify your application and documents, and thereafter process the subsidy claim.
How applications are assessed
Applications are filed via the Madhya Pradesh Government's Invest Portal. The Tourism Department/Board then verifies the application along with the supporting documents, confirming that the project satisfies the prescribed capital expenditure and employment generation criteria and that all requisite permissions and project completion conditions have been met before the subsidy claim is taken forward.
Frequently asked questions
What is the primary objective of this scheme?
Madhya Pradesh offers capital subsidies to tourism infrastructure projects, with the amount determined by the capital invested and the employment generated, in order to draw private investment into the sector and create jobs in the state.
What is the maximum amount of assistance I can receive?
Investment Promotion Assistance is capped at ₹90 crore for Ultra-mega projects, calculated as 30% of capital investment, ₹30 crore for Mega projects and ₹15 crore for Large projects.
Who is eligible to apply for this scheme?
Any private entity — including Public/Private Limited Companies, LLPs, Partnership Firms, Proprietary Concerns, Cooperatives, Trusts, FPOs, and individuals — may apply if it invests at least ₹10 crore and generates employment for residents of Madhya Pradesh. The investment and employment thresholds that apply vary with the project category (Large, Mega, Ultra-mega).
Are there any special benefits for certain categories of applicants or projects?
SC/ST applicants holding 100% ownership qualify for an extra 5% capital investment subsidy. Heritage Hotel projects also face lower minimum investment and employment thresholds — 50% of the standard limits for their category — while retaining eligibility for the same benefits.
How is the assistance disbursed?
Approved assistance is released in instalments across four years: 10% in year one, 10% in year two, 5% in year three and 5% in year four, subject to fulfilment of all conditions such as project completion timelines and employment maintenance.
What kind of documents are typically required for the application?
Applicants typically need to submit proof of company registration, a detailed project report covering capital expenditure and employment projections, land ownership or lease documents, regulatory permissions, and financial statements, though the portal registration does not spell this out in full. Once the project is complete, capital expenditure proof and employment records must be furnished to verify the subsidy claim.
Sectors
- Travel Tourism
- Tourism
- Infrastructure
- Capital Subsidy
- Madhya Pradesh
- Economic Development
Details last verified on 18 September 2026. Source: the issuer's published information.