Scheme of Financial Assistance to IHMs/FCIs/IITTM/ICI/NCHMCT/PSUs

The scheme "Scheme of Financial Assistance to IHMs/FCIs/IITTM/ICI/NCHMCT/PSUs" was launched by the Ministry of Tourism, Government of India. The scheme aims to extend Central Financial Assistance for various developmental projects related to tourism, hospitality, and allied sectors. The scheme provides Central Financial Assistance for setting up new Institutes of Hotel Management (IHMs), Food Craft Institutes (FCIs), and new Centres/branches of Indian Institute of Tourism & Travel Management (IITTM), Indian Culinary Institute (ICI), and National Council for Hotel Management & Catering Technology (NCHMCT). It also covers expansion, addition, alteration of buildings, and replacement/upgradation of equipment for existing institutions like Central IHMs, Centres of IITTM, NCHMCT, and ICI Centres.

A. Financial Ceilings for Projects

• Setting up a new State Institute of Hotel Management (SIHM):
◦ Maximum Central Financial Assistance ceiling is ₹12,50,00,000/-.
◦ Construction ceiling is ₹10,00,00,000/-.
◦ Equipment purchase ceiling is ₹2,50,00,000/-.
◦ Additional financial assistance for construction of Hostel Block is up to ₹4,00,00,000/-.
• Setting up a SIHM in an existing Building:
◦ Central Financial Assistance (CFA) for the academic block construction is limited to ₹6,00,00,000/- or 75% of the construction cost, whichever is less.
◦ Maximum financial assistance for construction of a hostel is ₹2,00,00,000/-.
◦ Maximum financial assistance for purchase of equipment is ₹2,00,00,000/-.
• Setting up a new Food Craft Institute (FCI) by State Government/Union Territory Administration:
◦ Over-all ceiling is ₹5,50,00,000/-.
◦ Construction of building ceiling is ₹4,35,00,000/-.
◦ Equipment ceiling is ₹1,15,00,000/-.
◦ Additional financial assistance for hostel facilities is up to ₹2,00,00,000/-.
• Setting up a FCI in an existing Building:
◦ Central Financial Assistance for the construction of the academic block is limited to ₹2,80,00,000/- or 75% of the construction cost, whichever is less.
◦ Financial assistance for purchase of equipment is up to ₹1,15,00,000/-.
• Applied Training Centre (ATC) attached to Central IHMs:
◦ Assistance is up to a maximum of ₹5,00,00,000/- for construction.
• Promotional Initiatives (Broad-basing for Public Sector Undertaking - PSU):
◦ One-time Central Financial Assistance is not to exceed ₹2,40,00,000/-.
◦ CFA for civil works is limited to ₹60,00,000/-.
◦ CFA for Heavy & Small Equipment, Furniture & Fixtures is limited to ₹1,80,00,000/-.

B. Adjustment and Flexibility

• Inter-component adjustments of assistance ceilings (for construction of academic block, hostels, and purchase of equipment) are allowed subject to a maximum of 10%.
• Such adjustments are allowed only on a case-to-case basis as a pre-sanction dispensation, and no flexibility is allowed after the project is sanctioned.

C. Fund Disbursement and Conditions

• Funds will be released via the Central Nodal Agency (CNA), which is the National Council for Hotel Management & Catering Technology (NCHMCT). The CNA maintains a bank account in State Bank of India (SBI). The Implementing Agency (sub-agency) opens a zero-balance account in SBI and draws funds to the extent of authorization given by the Ministry on a real-time basis.
• Maximum Central Financial Assistance up to ₹10,00,000/- shall be provided immediately upon sanction of the project to meet expenditure for preparatory activities.
• First Installment: The first installment of fund, equaling 40% of the sanctioned amount, would be released after adjusting the preparatory fund of ₹10,00,000/-, once the tender process is completed.
• Subsequent Installments: The balance amount would be released in different tranches of 40% and 15%.
• Final Installment: The final installment of 5% would be released only after the completion of all civil works and submission of required documents like the completion certificate and display of credit to the Ministry.
• Release: The first installment of grant will be released only after the land is transferred in the name of the society (as stipulated) and the contract is awarded by the implementing agency. Subsequent installments will be released only after a Utilization Certificate (UC) for at least 75% of the previous installment(s) is furnished.
• Renewal/Continuation: Fresh requests for Central Financial Assistance for major maintenance/renovation (where the estimated expenditure is above ₹20,00,000/-) will only be entertained after a period of five years from the date of sanctioning of the previous grant for that purpose.

• The applicant must be a Society formed by the Central Government, State Government, or Union Territory Administration.
• The applicant must be registered under the Societies Registration Act 1860.
• The applicant may be an autonomous society formed by the Central Government, such as the Indian Institute of Tourism & Travel Management (IITTM), National Council for Hotel Management & Catering Technology (NCHMCT), or Indian Culinary Institute (ICI).

A. Criteria for Setting up a New State Institute of Hotel Management (SIHM)

• The applicant must ensure the Institute of Hotel Management (IHM) Society is registered under the Societies Registration Act 1860 by the Central Government, State Government, or Union Territory Administration.
• The applicant must propose the Institute of Hotel Management be run only by the State Government Society or Union Territory Administration Society.
• The applicant must ensure the State Government/Union Territory Administration concerned has transferred a piece of developed land, free from all encumbrances, necessary for the purpose.
• The applicant must ensure the transferred land measures not less than five acres.
• The applicant must ensure the State Government/Union Territory Administration concerned has committed to providing basic services/utilities like electricity, water supply, and provision of sewerage.
• The applicant must submit land transfer documents in the name of the IHM Society.
• The applicant, if land transfer to the Society is not possible, must ensure the land is clearly demarcated for the IHM and is at least in the possession of the State Government/Union Territory Administration concerned, in the name of the Tourism Department.
• The applicant must ensure that reasons for difficulties in transferring the land to the Society are recorded in writing and are acceptable to the Central Government.
Preference, Priority, Reservation, Relaxation
• The applicant who proposes the setting up of a SIHM in hilly areas or in the six classified large Urban Agglomeration cities (Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, and Delhi) must ensure the developed land measures not less than two acres.
• The applicant must adhere strictly to the norms of affiliation related to academic and equipment infrastructure, including the covered areas, if utilizing the special dispensation for land size in specific areas.
• The applicant must ensure priority will be given to those states which do not have adequate numbers of institutions in the Tourism and Hospitality Education while deciding the site.

B. Criteria for Setting up a SIHM in an Existing Building

• The applicant must propose setting up a SIHM in an existing building provided by the State Government/Union Territory Administration.
• The applicant must ensure the building is suitable for housing the IHM.
• The applicant must satisfy the other general conditions stipulated for setting up a new IHM (detailed in Section A(I)).

C. Criteria for Upgradation of Existing Food Craft Institute (FCI) into SIHM

• The applicant must submit a proposal for upgradation that is justified and found feasible by the Central Government.
• The State Government must dissolve the existing FCI Society.
• The State Government must form a new Society in the name of SIHM and register the same under the Societies Registration Act 1860.
• The applicant must ensure the grant of Central Financial Assistance is subject to the other conditions stipulated for setting up a new IHM (detailed in Section A(I)).

D. Criteria for Setting up a New Food Craft Institute (FCI)

• The applicant's proposal for setting up a FCI will only be considered after registration of the FCI Society under the Societies Registration Act 1860 by the State Government.
• The applicant must ensure the State Government/Union Territory Administration concerned has transferred a piece of developed land, free from all encumbrances, necessary for the purpose.
• The applicant must ensure the transferred land measures not less than three acres, in the name of the FCI Society.
• The applicant must ensure the State Government/Union Territory Administration concerned has committed to providing basic services/utilities like electricity, water supply, and provision of sewerage.
• The applicant must provide land transfer documents in favor of the FCI Society.
Preference, Priority, Reservation, Relaxation
• The applicant who proposes the setting up of a FCI in hilly areas or in the six classified large Urban Agglomeration cities must ensure the developed land measures not less than one acre.
• The applicant must adhere strictly to the norms of affiliation related to academic and equipment infrastructures, including the covered areas, if utilizing this special dispensation.

E. Criteria for Setting up FCI in an Existing Building

• The applicant must ensure the existing building is offered free-of-cost by the State Government/Union Territory Administration concerned.
• The applicant must ensure the building is suitable for housing the FCI.
• The applicant must ensure the proposal is otherwise feasible.

F. Criteria for Setting up New Centres of Indian Institute of Tourism & Travel Management (IITTM), Indian Culinary Institute (ICI), National Council for Hotel Management & Catering Technology (NCHMCT)

• The applicant can be the State Government, the Ministry of Tourism, or the Institute.
• The applicant must ensure the State Government/Union Territory Administration concerned has transferred a piece of developed land, free from all encumbrances, necessary for the purpose.
• The applicant must ensure the transferred land measures not less than five acres.
• The applicant must ensure the State Government/Union Territory Administration concerned has committed to providing basic services/utilities like electricity, water supply, and provision of sewerage.
• The applicant must ensure adequate land is already available in the possession of the Societies of the Central Government Institution.
Preference, Priority, Reservation, Relaxation
• The applicant must ensure that if the setting up of a Centre is in hilly areas or in the six classified large Urban Agglomeration cities, the developed land measures not less than two acres.
• The applicant must adhere strictly to the norms of affiliation related to academic and equipment infrastructure, including the covered areas, if utilizing this special dispensation.

G. Criteria for Applied Training Centre (ATC) attached to Central IHMs

• The applicant must be a Central Institute of Hotel Management.
• The applicant must have two acres of surplus land already available with the Institute or must ensure the State Government has provided the additional land required for the purpose.
• The applicant must ensure there are no Hotels within a distance of two kilometers from the proposed site.

Post-Selection Conditions

• The applicant must ensure Institutes of Hotel Management/Food Craft Institutes follow the academic/admission norms prescribed by the National Council for Hotel Management & Catering Technology.
• The State Government/Union Territory Administration concerned must give an undertaking to follow the academic/admission norms before funds are sanctioned for setting up an IHM.
• The applicant must ensure admissions to Institutes of Hotel Management are based on a joint entrance examination.
• The applicant must ensure that if a State Institute of Hotel Management (SIHM) set up with Central Financial Assistance is under the aegis of a university, the curriculum must match the National Council for Hotel Management & Catering Technology/Indira Gandhi National Open University (IGNOU) syllabus.
• The applicant must ensure that if the SIHM is under a university, the university must be recognised by the University Grants Commission (UGC).
• The applicant must ensure that if the cost of the project exceeds the amount of assistance granted by the Ministry, the remaining expenditure shall be met by the State Government/Union Territory Administration concerned.

Offline

Step 1:**** Society Formation, Registration, and Land Commitment

• The applicant must ensure that the Central Government, State Government, or Union Territory Administration forms a relevant Society (Institute of Hotel Management/Food Craft Institute/State Institute of Hotel Management) and registers it under the Societies Registration Act 1860 before the proposal is considered.
• Simultaneously, the State Government/Union Territory Administration concerned must transfer a requisite piece of developed land, free from all encumbrances, measuring the minimum required acreage (five acres generally, or less for specific locations/institutes), and must commit to providing basic services such as electricity and water supply.

Step 2:**** Detailed Project Report Submission

• The State Government or Union Territory Administration must submit a Detailed Project Report covering all aspects of the project (whether setting up new institutes, expansion, or upgradation) to the Ministry of Tourism, ensuring adherence to the norms and formats being developed in consultation with the National Council for Hotel Management & Catering Technology.
• The proposal must include necessary land transfer documents and, in specific cases, an undertaking regarding adherence to academic norms.

Step 3:**** Approval and Constitution of Monitoring Bodies

• Upon the Ministry of Tourism’s decision to sanction the project, the society formed to run the institution must constitute a Project Construction Committee (PCC) for the ground-level implementation and monitoring of the project, with the committee's composition decided in consultation with the Ministry of Tourism.
• Furthermore, a proper Agreement must be established with the Executing Agency (such as the Central Public Works Department/Public Works Department or other Central/State Government Agency) detailing terms, cost, timeline, and penalty clauses for delays.