Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation

The scheme "Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation" was launched by the Department of Tourism, Government of Madhya Pradesh. The scheme aims to encourage the renovation, modernization, and upgradation of existing hotels and resorts into Deluxe or higher category hotels through private investment. The scheme provides a capital subsidy calculated as per the tourism policy guidelines for the respective category, subject to specific investment and capacity milestones. The applicant must be an existing hotel or resort unit making a minimum capital investment of ₹10,00,00,000/- or ₹25,00,00,000/- depending on the upgradation category. The scheme is implemented by the Madhya Pradesh Tourism Board. The applications for this scheme are accepted online through the Madhya Pradesh Government's Invest Portal.

Subsidy For Upgradation To Deluxe Hotels

Existing standard hotels (minimum 50 rooms) and mini resorts (minimum 20 rooms) upgrading to Deluxe Hotels/Resorts are eligible for capital subsidy as per the tourism policy under such category.

Subsidy For Upgradation To 4-Star or Higher

Existing Deluxe hotels and resorts upgrading to 4-star or higher category Hotels (minimum 75 rooms) or Resorts (minimum 25 rooms) are eligible for capital subsidy as per the tourism policy under such category.

Additional Subsidy

An additional 5% Capital Investment Subsidy shall be given to tourism projects established in distant and ulterior areas.

Conditions

• It will be mandatory for all units, who have availed subsidy to run the units at least for three years from the date of availing the subsidy.
• Such units will submit a self-declaration on or before 15th of April every year regarding continuous operation of the unit.
• On non-compliance regarding the closure of the unit, the investor shall have to return the subsidy amount as follows:
• Closure of unit within 1 year from the date of receipt of subsidy: 80% amount of subsidy has to be refunded.
• Closure of unit within 2 years from the date of receipt of subsidy: 60% amount of subsidy to be refunded.
• Closure of unit within 3 years from the date of receipt of subsidy: 50% amount of subsidy to be refunded.

• The applicant must be an existing Standard Hotel or Mini Resort to apply for Category A upgradation.
• The applicant must ensure the upgraded facility meets the criteria for Deluxe Hotels (minimum 50 rooms) or Resorts (minimum 20 rooms) under Category A.
• The applicant must make a minimum investment of ₹10,00,00,000/- to be eligible for the subsidy under Category A.
• The applicant must be an existing Deluxe Hotel or Resort to apply for Category B upgradation.
• The applicant must ensure the upgraded facility meets the criteria for 4-star or higher category Hotels (minimum 75 rooms) or Resorts (minimum 25 rooms) under Category B.
• The applicant must make a minimum investment of ₹25,00,00,000/- to be eligible for the subsidy under Category B.
• The applicant must claim subsidy only on capital investment made after the enforcement of this Policy.
• The applicant must submit the application in the prescribed format within 1 year from the date of commencement of operation.
• The applicant must not claim Investment Promotion Assistance if they are claiming capital subsidy under this policy.

Offline

Registration Process

Step 1: The applicant must visit the Madhya Pradesh Government's Invest Portal, and initiate the registration process as a "Vendor / Investor".
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 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. The Application Number, User ID, password, and all other important communications will be sent to this registered email ID.
Step 4: The applicant must complete the basic registration form submission. The system generates a User ID and password, which are shared directly with the applicant's registered mobile number.
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 is met.
• Commence commercial operations and gather proof of operation.

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.