Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease

The scheme "Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease" was launched by the Tourism Department, Government of Madhya Pradesh. The scheme aims to encourage private investment in the conservation and operationalization of heritage properties owned by the government by converting them into heritage hotels. The scheme provides a capital investment subsidy of 15% against fixed capital investment, subject to a maximum ceiling of ₹5,00,00,000/-. The applicant must invest a minimum capital expenditure of ₹10,00,00,000/- in the project approved by the department. The scheme is implemented by the Madhya Pradesh Tourism Board. The applications for this scheme are accepted online through the State Government's Invest Portal.

• The scheme provides a capital subsidy of 15% against the Fixed Capital Investment made in the project.
• The maximum ceiling for the capital subsidy is ₹5,00,00,000/-.
• SC/ST category entrepreneurs who establish the tourism project under 100% ownership shall be entitled for an additional 5% capital investment subsidy.
• Projects established in distant and ulterior areas are entitled to an additional 5% Capital Investment Subsidy.

Disbursal Conditions

• The unit must operate continuously for at least three years from the date of availing the subsidy.
• The unit must submit a self-declaration on or before the 15th of April every year regarding the continuous operation of the unit.
• If the unit closes within 1 year of receiving the subsidy, 80% of the amount must be refunded.
• If the unit closes within 2 years of receiving the subsidy, 60% of the amount must be refunded.
• If the unit closes within 3 years of receiving the subsidy, 50% of the amount must be refunded.
• Any unit claiming Investment Promotion Assistance (for Large/Mega projects) shall not be entitled to capital subsidy under this scheme.
• If the unit is entitled to a grant/subsidy in more than one category, the applicant must choose only one category.

• The applicant must establish a Heritage Hotel project.
• The applicant must have obtained the Heritage Assets from the Tourism Department on a lease basis.
• The applicant must incur a minimum capital expenditure of ₹10,00,00,000/- as approved by the department.
• The applicant must be a private investor, which may include a proprietary concern, partnership firm, company, or other legal entity.
• The applicant must have obtained the heritage asset through the open bidding process conducted by the Empowered Committee.
• The applicant must execute and operate the entire project in one go, or the capital expenditure incurred up to a maximum of 05 years prior to the commencement of the unit will be considered for the calculation of the capital grant.
• The applicant must ensure the project is certified as a heritage hotel by the Tourism Department based on the framed rules and procedures.

Offline

Registration Process

Step 1: The applicant must visit Madhya Pradesh Government's Invest Portal to initiate the registration process as a "Vendor / Investor." This portal serves as the single interface for availing different kinds of services offered by the corporation to investors and vendors.
Step 2: The applicant must fill in the basic information section by selecting the appropriate "Type of Organisation" from the available options, which include Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, and Individual. The applicant must also accurately enter the "Firm/Company Name" and the "Authorized Person Name" to establish the identity of the entity.
Step 3: The applicant must enter a valid email ID and mobile number, ensuring that both remain active throughout the entire process, as the Application Number, User ID, password, and all other important communications will be sent to this registered email ID. The applicant must verify that the email address is correct and ensure that emails sent to this mailbox are not redirected to the junk or spam folder.
Step 4: The applicant must complete the basic registration form submission, noting that there is no charge for this specific basic registration step. Upon successful submission of the information, the system generates a User ID and password, which are shared directly to the applicant's registered mobile number for login purposes.
Step 5: The authorized person logs in to the portal using the User ID and password received on the registered mobile number to process the company's activities. After the initial login, the applicant must update their profile to complete the full registration process before proceeding to apply for the scheme.

Application Process

Step 1: The applicant must apply for and secure mandatory permissions through the online single-window system within the stipulated time frames. Then, the applicant must do the following -

• Complete the construction, ensuring the minimum capital expenditure of ₹3,00,00,000/- is met.
• Commence commercial operations and gathers proof of operation, such as the first lodging or catering bill.

Step 2: The applicant must submit the capital subsidy application online within one year from the date of commencement of operation. Upload all required documents, ensuring all files meet the specified format requirements (e.g., JPG for photos).
Step 3: The Tourism Department/Board verifies the application and documents and processes the subsidy claim.