NGO Funds India

Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel

Tourism Department, Government of Madhya Pradesh · Central government · Verified 3 August 2026

The Madhya Pradesh Tourism Department offers a 15% capital subsidy (up to ₹5 crore) to expand existing hotels, resorts, and heritage properties.

Open, rolling. Applications are accepted continuously — there is no deadline.

Key facts

Grant size
Up to ₹5 crore
Funding type
Subsidy
Deadline
Rolling
Disbursement
Reimbursed after spend

About this program

The Madhya Pradesh Tourism Department, under the Government of Madhya Pradesh, has introduced the "Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel" scheme. Its purpose is to stimulate private investment in the state by supporting the growth of existing tourism accommodation facilities.

Under this initiative, a capital investment subsidy of 15% is offered on fixed capital investment, capped at ₹5,00,00,000/-. To qualify, applicants must increase the staying capacity of their established unit by at least 50%. The Madhya Pradesh Tourism Board administers the scheme, and applications are submitted online via the state government's Invest Portal.

This effort seeks to strengthen the hospitality sector, attract more visitors, and create economic opportunities across Madhya Pradesh. Over time, it aims to enhance tourism infrastructure and establish the state as a leading destination.

Who can apply

Eligible organisation types
All nonprofit forms
12A registration
Not specified
80G registration
Not specified
CSR-1 registration
Not specified
FCRA registration
Not specified
NGO Darpan ID
Not specified
Where the NGO may be based
Madhya Pradesh
  • Applicant must operate an established Star, Deluxe, or Standard Hotel, Resort, or Heritage Hotel.
  • Minimum capital expenditure of ₹1,00,00,000/- must be incurred, as approved by the department.
  • Expansion must result in at least 50% increased staying capacity to qualify for the subsidy.
  • Certification of heritage hotels/tourism projects from the Tourism Department is required.
  • Application for capital subsidy must be submitted within 1 year from the date of commencement of operation.
  • Investment made prior to 3 years from the date of commencement of operation is excluded from capital subsidy calculation.

How to apply

  • Registration Process:
  • Go to the Madhya Pradesh Government's Invest Portal (https://sws.invest.mp.gov.in/) and sign up as a "Vendor / Investor".
  • Provide the necessary details, such as "Type of Organisation", "Firm/Company Name", "Authorized Person Name", a working email ID, and a mobile number.
  • Submit the basic registration form; the User ID and password will be delivered to the mobile number you registered.
  • Access the portal with the User ID and password you receive, then complete your profile to finish the registration.
  • Application Process:
  • Obtain all required permissions through the online single-window system.
  • Finish construction, ensuring the minimum capital expenditure of ₹1,00,00,000/- is achieved.
  • Start commercial operations and collect evidence of operation.
  • File the capital subsidy application online within one year of the operation start date.
  • Attach all necessary documents, making sure they comply with the specified format requirements.
  • The Tourism Department/Board will review the application and documents, then proceed with processing the subsidy claim.

Apply on the funder's site

How applications are assessed

The Tourism Department/Board checks the application and accompanying documents against the scheme’s eligibility criteria and conditions. After this verification, the subsidy claim is processed and funds are released as per the programme guidelines. This procedure confirms that only qualifying units obtain the subsidy for their expansion projects, upholding the scheme’s objectives and integrity.

Frequently asked questions

What is the primary objective of this scheme?

The scheme incentivises private investment to expand existing tourism accommodation units—star, deluxe, standard hotels, resorts, and heritage hotels—across Madhya Pradesh.

What is the maximum subsidy available?

The maximum capital investment subsidy is ₹5,00,00,000 (₹5 crore).

What is the minimum expansion required for eligibility?

Applicants must ensure the established unit's staying capacity expands by at least 50%.

What is the application deadline?

The capital subsidy application must be submitted online within one year of the date operations begin.

What happens if the unit closes after availing the subsidy?

If the unit closes within one year, 80% of the subsidy must be refunded; within two years, 60%; and within three years, 50%.

Focus areas

  • Travel Tourism
  • Tourism
  • Hospitality
  • Hotel Expansion
  • Capital Subsidy
  • Madhya Pradesh

Details last verified on 3 August 2026. Source: the funder's published information.

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