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Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation

Madhya Pradesh Tourism Board · Central government · Verified 3 August 2026

The Madhya Pradesh Tourism Board's scheme funds existing hotels and resorts with a capital subsidy for renovation and upgradation to Deluxe or 4-star and higher categories.

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

Key facts

Grant size
Not specified
Funding type
Subsidy
Deadline
Rolling
Disbursement
Reimbursed after spend

About this program

The Department of Tourism, Government of Madhya Pradesh, administers the "Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation" scheme. Its purpose is to encourage private capital flow into the state's tourism industry by supporting existing hotels and resorts to renovate, modernise, and upgrade their facilities to attain a Deluxe or higher category rating.

Under the scheme, a capital subsidy is provided in line with tourism policy guidelines for specified categories. Eligibility depends on meeting minimum thresholds for capital investment and capacity. Applicants must be existing hotel or resort units planning substantial investment, with the required amount set at either ₹10 crore or ₹25 crore, depending on the target upgradation category.

The Madhya Pradesh Tourism Board implements the programme. Interested parties can submit applications online through the Madhya Pradesh Government's Invest Portal.

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 be an existing Standard Hotel or Mini Resort to qualify for Category A upgradation.
  • Upgraded facility under Category A must meet Deluxe Hotel criteria (minimum 50 rooms) or Resort criteria (minimum 20 rooms).
  • Category A requires minimum capital investment of ₹10,00,00,000.
  • Applicant must be an existing Deluxe Hotel or Resort for Category B upgradation.
  • Upgraded facility under Category B must meet 4-star or higher Hotel criteria (minimum 75 rooms) or Resort criteria (minimum 25 rooms).
  • Category B requires minimum capital investment of ₹25,00,00,000.
  • Subsidy claimable only on capital investment made after the policy's enforcement.
  • Application must be submitted within 1 year from the date of commencement of operation.
  • Investment Promotion Assistance cannot be claimed if capital subsidy under this policy is claimed.

How to apply

  • Registration Process:
  • Go to the Madhya Pradesh Government's Invest Portal (https://sws.invest.mp.gov.in/) and initiate registration under the category "Vendor / Investor".
  • Enter the required details, choosing the "Type of Organisation" (such as Public Limited, Private Limited, or Proprietorship), along with the "Firm/Company Name" and "Authorized Person Name".
  • Furnish a working email address and mobile number for all future correspondence.
  • Complete the initial registration form to obtain a User ID and password, which will be delivered to the mobile number you provided.
  • Sign in to the portal using the credentials received, and then complete your profile to finish the full registration.
  • Application Process:
  • Obtain all necessary approvals through the online single-window system.
  • Finish the construction work, ensuring that the minimum capital expenditure (₹10 crore or ₹25 crore) is achieved.
  • Start commercial operations and gather evidence of operational activity.
  • File the capital subsidy application online within twelve months of the operational start date, attaching all necessary documents in the prescribed formats.
  • The Tourism Department/Board will review the application and supporting documents, and then proceed with processing the subsidy claim.

Apply on the funder's site

How applications are assessed

Applications are reviewed by the Madhya Pradesh Tourism Department/Board, which checks the accompanying documents against the scheme’s eligibility criteria, investment milestones, and operational commencement requirements. Approval is granted only when these conditions are met in line with the tourism policy guidelines.

Frequently asked questions

What is the purpose of this scheme?

The scheme supports private investment to renovate, modernise and upgrade existing hotels and resorts in Madhya Pradesh into Deluxe or higher category establishments.

Who is eligible to apply for this subsidy?

Existing Standard Hotels or Mini Resorts may apply under Category A to upgrade to Deluxe, while existing Deluxe Hotels or Resorts may apply under Category B to upgrade to 4-star or higher, subject to specific room count and investment criteria.

What are the minimum investment requirements?

A minimum capital investment of ₹10 crore is required for Category A upgradation, and ₹25 crore for Category B upgradation.

Is there an additional subsidy for certain locations?

Yes, tourism projects in distant and ulterior areas of Madhya Pradesh qualify for an extra 5% Capital Investment Subsidy.

When should the application for the subsidy be submitted?

The application must be submitted online within one year of the date on which commercial operations commence after upgradation.

What happens if a unit closes after availing the subsidy?

Units must operate for a minimum of three years. If closure occurs within the first, second, or third year, 80%, 60%, or 50% of the subsidy must be refunded, respectively.

Focus areas

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

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

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