Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort

Benefits

The beneficiary is entitled to a Capital Investment Subsidy of 15% against the Fixed Capital Investment.
The maximum ceiling of the subsidy provided is ₹5,00,00,000/-.

Disbursal Conditions
The unit must be operational for at least three years from the date of availing the subsidy.
The unit must submit a self-declaration regarding continuous operation on or before the 15th of April every year.
If the unit closes within 1 year of receiving the subsidy, 80% of the amount must be refunded.
If the unit closes within 2 years of receiving the subsidy, 60% of the amount must be refunded.
If the unit closes within 3 years of receiving the subsidy, 50% of the amount must be refunded.
Investment made prior to 3 years from the date of commencement of operation will be accepted for calculating the capital subsidy.

Application Process

Apply Offline
Registration Process
Step 1: The applicant must visit Madhya Pradesh Government's Invest Portal
to initiate the registration process as a "Vendor / Investor." This portal serves as the single interface for availing different kinds of services offered by the corporation to investors and vendors.
Step 2: The applicant must fill in the basic information section by selecting the appropriate "Type of Organisation" from the available options, which include Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, and Individual. The applicant must also accurately enter the "Firm/Company Name" and the "Authorized Person Name" to establish the identity of the entity.
Step 3: The applicant must enter a valid email ID and mobile number, ensuring that both remain active throughout the entire process, as the Application Number, User ID, password, and all other important communications will be sent to this registered email ID. The applicant must verify that the email address is correct and ensure that emails sent to this mailbox are not redirected to the junk or spam folder.
Step 4: The applicant must complete the basic registration form submission, noting that there is no charge for this specific basic registration step. Upon successful submission of the information, the system generates a User ID and password, which are shared directly to the applicant's registered mobile number for login purposes.
Step 5: The authorized person logs in to the portal using the User ID and password received on the registered mobile number to process the company's activities. After the initial login, the applicant must update their profile to complete the full registration process before proceeding to apply for the scheme.

Application Process
Step 1: The applicant must apply for and secure mandatory permissions through the online single-window system within the stipulated time frames. Then, the applicant must do the following -
Complete the construction, ensuring the minimum capital expenditure of ₹3,00,00,000/- is met.
Commence commercial operations and gathers proof of operation, such as the first lodging or catering bill.

Step 2: The applicant must submit the capital subsidy application online within one year from the date of commencement of operation. Upload all required documents, ensuring all files meet the specified format requirements (e.g., JPG for photos).
Step 3: The Tourism Department/Board verifies the application and documents and processes the subsidy claim.

Frequently Asked Questions

References & Official Links

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Scheme Details