State Tourism Policy Incentives
Government of India · Central government
State capital subsidies and interest subvention fund tourism and hospitality businesses.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
Tourism incentives are largely administered at the state level. Common offerings include a capital subsidy covering 15%–30% of project cost, interest subvention on term loans of 2%–5%, stamp-duty exemption, electricity-duty concession, GST-linked incentives, and concessional land allotment.
These benefits apply to hotels, resorts, homestays, wellness centres, adventure tourism ventures, and MICE facilities.
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
- Not restricted
- Registered with the State Tourism Department as a new tourism enterprise. - Private developers of hotels, resorts, or homestays in eligible project categories.
How to apply
- Locate the current Tourism Policy for your state, which is published on the State Tourism Department website or tourism.gov.in. - Register the project with the State Tourism Department prior to starting construction; prior approval is generally required. - Draft a Detailed Project Report (DPR) covering land documents, architectural plans, cost estimates, and projected employment figures. - Submit the application, along with the DPR, promoter KYC, company incorporation papers, and the bank sanction letter, to the State Tourism Department or the designated nodal agency. - A state inspection committee evaluates the site and project viability; upon clearance, an approval letter is issued. - Subsidy disbursement occurs in instalments, tied to construction milestones or after operations begin, depending on the state.
Frequently asked questions
Who qualifies for State Tourism Policy Incentives?
New tourism enterprises registered with their State Tourism Department are eligible, including private developers of hotels, resorts, homestays, wellness centres, adventure tourism facilities and MICE (meetings, incentives, conferences, exhibitions) venues. Eligibility criteria vary by state.
What kinds of financial support are available?
Typical benefits are a capital subsidy of 15%–30% of project cost, interest subvention of 2%–5% on term loans, stamp-duty exemption on land or property registration, electricity-duty concessions, GST-linked incentives, and land allotment at concessional rates.
Is equity taken by the government?
No. These are government incentive schemes, so subsidies and concessions are non-dilutive, and the state does not take any equity stake.
Which states have the best tourism incentives?
Rajasthan, Kerala, Uttarakhand, Himachal Pradesh, and Maharashtra currently offer capital subsidies under their tourism policies. Since benefits and eligibility vary with each policy cycle, check the latest policy of the state where your project is located.
Where do I apply?
Applications must be submitted to your State Tourism Department or the nodal implementing agency, typically the State Tourism Development Corporation. The Ministry of Tourism’s portal at tourism.gov.in lists state-level schemes and contact details.
Are existing hotels eligible?
Most state policies reserve primary capital subsidies for new tourism projects. Existing units may qualify under separate upgrade sub-schemes, so consult your state policy document for specific provisions.
Sectors
- Travel Tourism
Details last verified on 3 August 2026. Source: the issuer's published information.