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

The Department of Tourism, Government of Madhya Pradesh, has introduced the "Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort" scheme. It offers a capital investment subsidy of 15% on fixed capital investment, capped at ₹5,00,00,000/-. Applicants must spend a minimum of ₹10,00,00,000/- on capital expenditure and set up at least 50 lettable air-conditioned rooms. The Madhya Pradesh Tourism Board administers the scheme, and applications are submitted online via the state's investment portal.

This initiative encourages private investment in premium accommodation to strengthen tourism infrastructure across the state. The subsidy aims to make large-scale hotel projects financially viable, attracting developers to establish deluxe, three-star, or higher category properties. By mandating a substantial capital outlay and a minimum of 50 air-conditioned rooms, the scheme ensures new developments meet quality benchmarks for domestic and international travellers. The government's support is intended to generate employment, stimulate local economies, and promote sustainable growth in the hospitality sector, aligning with Madhya Pradesh's broader economic objectives. The Madhya Pradesh Tourism Board oversees implementation, managing applications and disbursals efficiently.

The application process for the Capital Investment Subsidy scheme is carried out in two phases: an initial online registration, followed by the submission of the formal application. The steps are outlined below.

• Step 1: Register on the Invest Portal. Begin by visiting the Madhya Pradesh Government's Invest Portal (https://sws.invest.mp.gov.in/) and registering as a "Vendor / Investor." This portal serves as a unified gateway for investor-facing services. At this stage, provide basic organisational details, including the "Type of Organisation" (Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, or Individual), "Firm/Company Name," and "Authorized Person Name."

• Step 2: Provide Contact Details. A working email address and mobile number are required. All important communications, including the Application Number, User ID, and password, are sent to the registered email. Check that emails from the portal are not diverted to the spam folder.

• Step 3: Submit Basic Registration. Once the necessary information is entered, submit the form. This initial registration carries no fee. After submission, a User ID and password are generated and delivered to the registered mobile number.

• Step 4: Log In and Complete the Profile. Use the credentials received to log in to the portal. The authorised person must update the profile to finish the registration process before any scheme application can be made.

• Step 5: Obtain Permissions and Start Operations. Before applying for the subsidy, secure all mandatory permissions through the online single-window system within the prescribed time limits. In parallel, complete the construction of the hotel/resort, ensure the minimum capital expenditure of ₹10,00,00,000/- is met, and begin commercial operations. Keep proof of operation, such as the first lodging or catering bill.

• Step 6: Submit the Capital Subsidy Application. The final application must be filed online through the Invest Portal within one year of the date operations commence. Upload all required documents in the specified formats (for instance, JPG for photographs).

• Step 7: Verification and Processing. The Tourism Department/Board reviews the submitted application and supporting documents before the subsidy claim is processed.

The Madhya Pradesh Tourism Department/Board checks each capital subsidy application and its attached documents before approving it. After submission, the application is reviewed in detail to confirm it meets every eligibility requirement, such as the minimum capital expenditure, the hotel or resort’s category and number of rooms, and the date commercial operations began. Only private investors who genuinely qualify for the subsidy, by establishing tourism infrastructure that meets the stated standards, are granted it.