State Tourism Policy Incentives
Government of India · Central government
State-level 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 largely come from state governments rather than the Centre. States commonly extend capital subsidies covering 15%–30% of project cost, interest subvention of 2%–5% on term loans, exemptions on stamp duty, concessions on electricity duty, incentives tied to GST, and land allotted at concessional rates.
These benefits apply to hotels, resorts, homestays, wellness centres, adventure tourism 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
- Tourism enterprises newly registered with the State Tourism Department - Private developers of hotels, resorts or homestays falling within eligible project categories
How to apply
- Obtain the current Tourism Policy document for your state, which can be found on the State Tourism Department website or at tourism.gov.in - File your project registration with the State Tourism Department prior to starting construction, as prior approval is generally compulsory - Assemble a Detailed Project Report (DPR) covering land documents, architectural plan, cost estimates and projected employment - Send the application, together with the DPR, promoter KYC, company incorporation documents and bank sanction letter, to the State Tourism Department or the nodal agency - A state inspection committee checks the site and assesses project feasibility; once clearance is granted, an approval letter is issued - Depending on the state, subsidies are released in tranches tied either to construction milestones or to the period after operations begin
Frequently asked questions
Who qualifies for State Tourism Policy Incentives?
Tourism enterprises registered with their State Tourism Department are eligible, covering private developers of hotels, resorts, homestays, wellness centres, adventure tourism facilities and MICE venues; the specific criteria differ from state to state.
What kinds of financial support are available?
Benefits commonly include capital subsidy covering 15%–30% of project cost, interest subvention of 2%–5% on term loans, stamp-duty exemption on land and property registration, electricity-duty concessions, GST-linked incentives, and land allotment at concessional rates.
Is equity taken by the government?
No. Government incentive schemes of this kind are non-dilutive; the state does not acquire any equity stake in your business.
Which states have the best tourism incentives?
Capital subsidies for tourism projects are available under the active policies of states including Rajasthan, Kerala, Uttarakhand, Himachal Pradesh and Maharashtra, so you should verify the current policy of the state where your project is located, since benefits and eligibility change with each policy cycle.
Where do I apply?
Apply through your State Tourism Department or the designated nodal implementing agency, which is frequently the State Tourism Development Corporation. The Ministry of Tourism's portal at tourism.gov.in carries links to state-level schemes along with contact details.
Are existing hotels eligible?
State tourism policies generally reserve primary capital subsidies for new projects; expansion or modernisation of existing units may be covered under separate upgrade sub-schemes. Consult your state policy document for the specific provisions that apply.
Sectors
- Travel Tourism
Details last verified on 14 September 2026. Source: the issuer's published information.