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

The Tourism Department, Government of Madhya Pradesh, runs the "Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas" scheme. Its purpose is to develop tourism infrastructure in remote and less-developed parts of the state. The programme offers enhanced financial incentives to reduce investment risk and encourage entrepreneurs to set up tourism businesses in these designated regions. This supports balanced regional growth, generates employment, and highlights the state's unexplored natural and cultural assets.

The scheme provides an additional 5% Capital Investment Subsidy on top of the rates set out in the state's Tourism Policy. There is no maximum ceiling on the subsidy amount, which allows larger projects to receive substantial support. The minimum investment and room count requirements are also relaxed, making the scheme accessible to a broader range of investors and project types. Applicants must establish their project in a location officially classified as "distant" or "ulterior" by the Tourism Department.

The Madhya Pradesh Tourism Board implements the scheme, and applications are processed through the state's unified investment portal. This arrangement simplifies the application process and supports timely handling of submissions.

The application process for the Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas runs primarily through the Madhya Pradesh Government's Invest Portal, although certain documents may need to be submitted or verified offline. The procedure starts with a compulsory registration on the [Invest Portal](https://sws.invest.mp.gov.in/), where the applicant must register as a "Vendor / Investor." At this stage, the system asks for basic details such as the "Type of Organisation" (including Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, and Individual), "Firm/Company Name," and "Authorized Person Name" to confirm the entity's identity. A working email ID and mobile number are necessary, since all important communications—including the Application Number, User ID, and password—are sent to these registered contacts. After the basic registration form is submitted, the portal generates a unique User ID and password, which are delivered to the applicant's registered mobile number. The authorised person then logs in with these credentials and must finish updating their full profile to conclude the registration before moving on to the scheme application.

Following registration, the scheme application comprises several distinct stages. To begin, applicants must obtain all required permissions through the online single-window system within the stipulated time limits. Next, the primary conditions involve completing the tourism project's construction, meeting the minimum capital expenditure threshold (50% of the standard limit), and then starting commercial operations. Evidence of operation must be collected carefully. The final essential step is to file the capital subsidy application online within one year from the date commercial operations begin. All necessary supporting documents must be uploaded, following the prescribed format requirements (for instance, JPG for photographs and PDF for legal documents). In the end, the Tourism Department/Board carries out a detailed examination of the submitted application and documents before processing the subsidy claim, confirming that all scheme conditions are satisfied.

Applications undergo review and verification by the Tourism Department/Board. This entails examining the submitted paperwork and confirming adherence to all eligibility conditions, such as project location, investment, and capacity specifications. Following successful verification, the subsidy claim is processed.