Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas

The Tourism Department, Government of Madhya Pradesh, introduced the scheme "Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas." Its stated purpose is to encourage tourism infrastructure development in remote and less-developed parts of the state. By offering enhanced financial incentives, the programme seeks to lower investment risk and attract entrepreneurs to set up tourism ventures in these designated zones. The initiative is intended to support balanced regional growth, generate employment, and highlight the state's unexplored natural and cultural assets.

Under this scheme, an additional 5% Capital Investment Subsidy is provided over and above the standard rates under the state's Tourism Policy. There is no maximum ceiling on the subsidy amount, which permits substantial support for larger projects. The programme also relaxes minimum investment and room count criteria, broadening access for various project types and investor profiles.

Applicants must establish a tourism project in a location officially classified as "distant" or "ulterior" by the Tourism Department. The Madhya Pradesh Tourism Board administers the scheme, and applications are processed through the state's unified investment portal, which is designed to streamline submissions and expedite approvals.

The application process for the Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas runs largely through the Madhya Pradesh Government's Invest Portal, although certain documents may need to be submitted or verified offline. The procedure starts with a compulsory registration step on the Invest Portal, where the applicant registers as a "Vendor / Investor." At this stage, basic details are captured, including the "Type of Organisation" (such as Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, or Individual), the "Firm/Company Name," and the "Authorized Person Name." A working email address and mobile number are required, since all important correspondence—including the Application Number, User ID, and password—is sent to these registered contacts. Once the basic registration form is submitted, the system issues a unique User ID and password, which are delivered to the applicant's registered mobile number. The authorised person then logs in with these credentials and must complete a full profile update to finalise the registration before moving on to the scheme application.

After registration, the scheme application process follows several distinct stages:

1. Apply for and obtain all mandatory permissions through the online single-window system within the prescribed time limits.
2. Complete the construction of the tourism project, ensuring that the minimum capital expenditure threshold (50% of the standard limit) is met.
3. Commence commercial operations and gather proof of operation.
4. Submit the capital subsidy application online within one year from the date of commencement of operation, uploading all required supporting documents in the specified formats (for example, JPG for photographs and PDF for legal documents).
5. The Tourism Department/Board then conducts a thorough verification of the application and documents before processing the subsidy claim, confirming compliance with all scheme guidelines.

Applications are examined and validated by the Tourism Department/Board. This step includes scrutinising the documents provided and confirming that every eligibility condition is met, such as the project’s location, the amount invested, and the capacity thresholds. Once verification succeeds, the subsidy claim moves forward for processing.