MySubsidy

Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas

Tourism Department, Government of Madhya Pradesh · Central government

Madhya Pradesh offers tourism projects in remote, less developed regions an extra 5% capital investment subsidy and relaxed requirements.

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 Tourism Department, Government of Madhya Pradesh, introduced the scheme "Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas." Its primary aim is to accelerate the creation of tourism infrastructure in the state's remote, strategically accessible and frequently underdeveloped regions. Through enhanced financial incentives, the programme seeks to reduce investment risk and draw entrepreneurs towards setting up tourism-related ventures in these priority locations. Balanced regional growth, employment generation and bringing Madhya Pradesh's unexplored natural and cultural heritage into view are the outcomes the initiative pursues.

Under the programme, an additional 5% Capital Investment Subsidy is available over and above the standard rates set out in the state's wider Tourism Policy. No maximum ceiling applies to subsidy amounts, which permits substantial backing for larger projects. Minimum investment and room count requirements have also been relaxed considerably, widening access for a broader range of tourism project types and investors.

To qualify, applicants must set up a tourism project at a location the Tourism Department has specifically designated as a "distant" or "ulterior" area, so that the incentive reaches the intended geographical zones. The Madhya Pradesh Tourism Board implements the scheme, and the state's unified investment portal handles all applications. This streamlined arrangement makes applying easier and supports timely processing for prospective investors.

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

- The applicant must set up a Tourism Project (for instance, a Hotel, Resort, and so on) as defined under the Tourism Policy. - The project must be situated in an area notified as "distant" or "new ulterior" by the Government of Madhya Pradesh, Tourism Department. - The applicant must commit a minimum investment amounting to no less than 50% of the limit prescribed under the standard Tourism Policy for that project category. - The project must provide at least 50% of the room capacity ceiling prescribed under the standard Tourism Policy. - The project must be established and made operational within the operative tenure of the Tourism Policy.

How to apply

Applications for the Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas are made mainly through the Madhya Pradesh Government's Invest Portal, although certain documents may need to be submitted or verified offline.

**Registration**

1. Register on the [Invest Portal](https://sws.invest.mp.gov.in/) as a "Vendor / Investor". This step is compulsory. 2. Enter basic details to establish the entity's identity: "Type of Organisation" (Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, or Individual), "Firm/Company Name", and "Authorized Person Name". 3. Provide a valid email ID and mobile number. The Application Number, User ID, password, and all other critical communications are sent to these registered contact details. 4. On submission of the basic registration form, the system generates a unique User ID and password, which are sent to the registered mobile number. 5. Log in with these credentials and complete the full profile update. Registration must be finalised in this way before the scheme application can proceed.

**Scheme application**

1. Apply for and obtain all mandatory permissions through the online single-window system within the specified time frames. 2. Complete construction of the tourism project, ensuring the minimum capital expenditure criteria (50% of the standard limit) are met. 3. Commence commercial operations and gather proof of operation meticulously. 4. Submit the capital subsidy application online within one year from the date of commencement of operation. 5. Upload all required supporting documents, strictly adhering to the specified format requirements (e.g., JPG for photos, PDF for legal documents). 6. The Tourism Department/Board then verifies the submitted application and documents thoroughly before processing the subsidy claim, ensuring compliance with all scheme guidelines.

Apply on the issuer's site

How applications are assessed

The Tourism Department or Board screens each application and checks the documents submitted with it. Verification covers the eligibility conditions, among them where the project is located, how much has been invested, and the capacity it will have. Once these checks are cleared, the subsidy claim moves forward for processing.

Frequently asked questions

Q: What is the primary objective of the "Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas" scheme?

The scheme supports tourism infrastructure growth in Madhya Pradesh's remote, accessible and less developed areas by offering higher financial incentives and easing eligibility norms for new tourism projects.

Q: What kind of financial incentive does this scheme offer to applicants?

The scheme adds a 5% Capital Investment Subsidy over and above the standard rates available under the state's Tourism Policy, thereby lowering the capital expenditure that investors must bear.

Q: Is there any upper limit or cap on the total subsidy amount that can be claimed?

No. This scheme sets no upper limit on the capital subsidy you can claim, so eligible large-scale projects can receive substantial financial support.

Q: What are the key eligibility criteria concerning the project's location?

Eligibility requires the tourism project to be sited in an area that the Government of Madhya Pradesh, Tourism Department has expressly classified as "distant" or "new ulterior".

Q: How does the scheme relax investment and capacity requirements for tourism projects?

The scheme halves the minimum capital investment limit and the minimum room count that the general Tourism Policy otherwise prescribes for that project type, which lowers the entry threshold for new ventures.

Q: What is the general application process for this capital investment subsidy?

Register on the Madhya Pradesh Government's Invest Portal, obtain the required project permissions, complete construction and begin commercial operations; the capital subsidy application must then be filed online within one year of the commencement date, after which the Tourism Department carries out verification.

Sectors

  • Travel Tourism
  • Tourism
  • Madhya Pradesh
  • Subsidy
  • Capital Investment
  • Rural Development

Details last verified on 18 September 2026. Source: the issuer's published information.