Investment Promotion Assistance To Setup Large/Mega/Ultra-Mega Tourism Projects
Tourism Department, Government of Madhya Pradesh · Central government · Verified 3 August 2026
Madhya Pradesh offers private entities up to ₹90 crore in financial incentives for large-scale tourism infrastructure, based on capital investment and employment generation.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Grant size
- ₹3 crore – ₹90 crore
- Funding type
- Subsidy
- Deadline
- Rolling
- Disbursement
- Paid in tranches
About this program
The Tourism Department, Government of Madhya Pradesh, has introduced the Investment Promotion Assistance to Setup Large/Mega/Ultra-Mega Tourism Projects scheme. It offers financial incentives to private investors and legal entities making substantial capital investments in tourism. The aim is to support the development of diverse projects, including large hotels, resorts, theme parks, and related facilities, which in turn generate significant employment for state residents. Projects are grouped into Large, Mega, and Ultra-mega categories, each with distinct capital expenditure and job creation thresholds, and assistance is provided accordingly.
Through these incentives, the state government intends to strengthen Madhya Pradesh’s standing as a leading tourist destination, improve visitor amenities, and stimulate economic activity in local communities. The scheme forms a key part of the state’s broader tourism policy, seeking to draw both domestic and international investors towards building modern tourism infrastructure.
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 a private entity: Public/Private Limited Company, LLP, Partnership Firm, Proprietary Concern, Cooperative, Trust, FPO, or Individual.
- Must meet minimum capital expenditure and employment generation criteria for one of the following categories: Large (₹10 crore investment, 50 MP residents employed), Mega (₹50 crore investment, 100 MP residents employed), or Ultra-mega (₹100 crore investment, 200 MP residents employed).
- Employment must be for residents of Madhya Pradesh.
- Cannot claim Capital Subsidy under any other policy clause for the same project.
- Heritage Hotels are eligible with 50% reduced investment and employment criteria.
- Projects must adhere to stipulated timelines for phase completion (2 years for phase 1, 3 years for phase 2, 5 years for final phase) to avail phase-wise incentives.
How to apply
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Step 1 (Registration): Go to the Madhya Pradesh Government's Invest Portal (https://sws.invest.mp.gov.in/) and register yourself as a "Vendor / Investor".
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Step 2 (Basic Information): Enter the required basic details, choosing the correct "Type of Organisation" (such as Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, or Individual), along with the "Firm/Company Name" and "Authorized Person Name".
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Step 3 (Contact Details): Supply a valid email address and mobile number. These will be used to send the application number, User ID, password, and all other essential communications.
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Step 4 (Registration Completion): Submit the basic registration form. A User ID and password will be created and sent to the mobile number you provided.
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Step 5 (Profile Update): Access the portal with the credentials you receive, then complete your profile to finish the full registration before applying for the scheme.
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Step 6 (Project Permissions & Completion): Obtain all mandatory permissions through the online single-window system within the prescribed deadlines. Finish project construction, meet the minimum capital expenditure requirement, and begin commercial operations.
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Step 7 (Subsidy Application): File the capital subsidy application online within one year of the date operations commence. Attach all necessary documents, ensuring they conform to the specified formats (for instance, JPG for photographs).
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Step 8 (Verification & Processing): The Tourism Department/Board will check your application and documents, and then proceed with processing the subsidy claim.
How applications are assessed
Applications are filed via the Madhya Pradesh Government's Invest Portal. The Tourism Department/Board then checks the submission and its accompanying paperwork. This review confirms that the project satisfies the prescribed capital expenditure and employment generation thresholds, and that all required approvals and project completion conditions have been met prior to the subsidy claim being processed.
Frequently asked questions
What is the primary objective of this scheme?
The scheme offers capital subsidies to private investors in Madhya Pradesh’s tourism infrastructure, with incentives calculated on the amount invested and jobs created, to stimulate tourism and employment in the state.
What is the maximum amount of assistance I can receive?
The maximum Investment Promotion Assistance is ₹90 crore for Ultra-mega projects, equivalent to 30% of capital investment; for Mega projects it is ₹30 crore, and for Large projects it is ₹15 crore.
Who is eligible to apply for this scheme?
Any private entity — including public or private limited companies, LLPs, partnership firms, proprietary concerns, cooperatives, trusts, FPOs, and individuals — that invests at least ₹10 crore and creates jobs for Madhya Pradesh residents qualifies. Minimum investment and employment thresholds vary by project category: Large, Mega, or Ultra-mega.
Are there any special benefits for certain categories of applicants or projects?
Yes, applicants from SC/ST categories with 100% ownership qualify for an additional 5% capital investment subsidy. Heritage Hotel projects also enjoy reduced minimum investment and employment thresholds, set at 50% of the standard limits for their category, while retaining access to the same benefits.
How is the assistance disbursed?
Approved assistance is released in four annual tranches: 10% in year one, 10% in year two, 5% in year three, and 5% in year four, subject to fulfilment of all conditions such as project completion timelines and employment maintenance.
What kind of documents are typically required for the application?
Applicants generally need to provide proof of company registration, detailed project reports covering capital expenditure and employment projections, land ownership or lease documents, regulatory permissions, and financial statements. After project completion, proof of capital expenditure and employment records will be required for subsidy claim verification.
Focus areas
- Travel Tourism
- Tourism
- Infrastructure
- Capital Subsidy
- Madhya Pradesh
- Economic Development
Details last verified on 3 August 2026. Source: the funder's published information.
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