Veerjyoti Puraskars 2026

This scheme in Madhya Pradesh offers a capital subsidy of 15% on fixed capital investment to proprietors Read More... establishing heritage hotels, with a maximum subsidy of ₹2 crore. Read less

Details

Are you a proprietor with a dream to open a heritage hotel in Madhya Pradesh? The state government, through its Tourism Department, is offering a significant financial boost to turn your vision into reality. The 'Capital Subsidy for Heritage Hotel under Proprietorship' scheme is designed to encourage private investment in preserving and promoting our rich heritage through tourism.

What Is This Scheme?

Simply put, this scheme provides financial assistance, specifically a capital subsidy, to individuals who own and run their businesses as proprietorships and want to establish a heritage hotel. It's a way for the Madhya Pradesh government to support entrepreneurs in developing unique hospitality experiences that highlight the state's cultural legacy.

Who Can Benefit From This Scheme?

This scheme is specifically for individuals who are operating their businesses as proprietorships. If you're looking to invest at least ₹3 crore in building and setting up a heritage hotel, and you're the sole owner of your business entity, this scheme is tailored for you.

Why This Scheme Is Important

By offering a capital subsidy, the scheme aims to reduce the initial financial burden on proprietors, making it easier to invest in creating quality heritage accommodations. This not only supports entrepreneurship but also plays a crucial role in boosting tourism, preserving historical structures, and creating employment opportunities within Madhya Pradesh.

Objective

This scheme in Madhya Pradesh offers a capital subsidy of 15% on fixed capital investment to proprietors establishing heritage hotels, with a maximum subsidy of ₹2 crore.

Benefits

A cash prize of ₹20,000/- is provided to each selected awardee.

A scroll/citation is provided to each selected awardee.

The award is conferred on Republic Day, which is the 26th of January, every year.

The award is restricted to only two persons annually.

Sources and references

Citizen's Charter

Eligibility Criteria

You must be operating your business as a Proprietorship.
You must be in the process of establishing a 'Heritage Hotel' as a tourism project.
You need to make a minimum capital investment of ₹3,00,00,000/- (as approved by the department).
Your project must be successfully established and operational within the current policy period.
Your application must be submitted within 1 year from the date your hotel starts commercial operations.
The investment claimed for the subsidy should have been made within 3 years before starting operations (or within 5 years if the project was completed in a single phase).
You cannot claim Investment Promotion Assistance if you are applying for this capital subsidy.

How To Apply

Submit your application online through the State Government's Invest Portal or the Single Window System.
The application should be submitted within one year from the date your heritage hotel commences operations.
For official application submission and further details, you can visit the Madhya Pradesh Tourism Board or the designated department. The application can be submitted online.

Documents Required

Identity and Legal Proof:
- Proof of authorization for the person representing the unit.
- Proprietor's name and address, or a registration certificate for a proprietary concern.
- Copy of PAN card.
- Copy of Photo ID proof (like Aadhaar Card, Voter ID, Passport).
- A cancelled cheque of the firm/company.
- Copy of the vendor form.
Land and Location Documents:
- Copies of Land Records, including Ownership Documents (Certified Khasra).
- Site Map.
- Copy of the registered sale deed or lease deed.
- Certificate from Town and Country Planning (TNCP).
- Copy of the map sanctioned by the local authority (Municipal Corporation, Municipality etc.).
- Copy of the Approved floor plan.
- Copy of building permission from the relevant authority.
Project and Financial Documents:
- Copy of the project report.
- Certificate of total project cost, certified by a certified Engineer/Valuer.
- Certificate of total capital cost, certified by a Chartered Accountant (CA).
- Details of any debt from financial institutions.
- Certificate from HRACC (if applicable).
- Completion certificate from the competent authority.
Proof of Operation:
- Proof of the date of commercial operation, such as a photocopy of the first lodging bill, catering bill, or the first service bill.
- Any other legally acceptable document proving the date of commercial operation.
- Photographs of the Unit/Project from 3 different angles (in JPG format, not exceeding 500 KB).

FAQ’s

What is the deadline for submitting the subsidy application after my hotel starts operating?

You need to submit your application within one year from the date your hotel commences commercial operations to be considered for the subsidy.

Can I claim subsidies from different categories if my project qualifies for more than one?

No, if your unit is eligible for grants or subsidies under multiple categories, you must choose and apply for the benefit under only one category.

What happens if I have to shut down my hotel within the first three years of receiving the subsidy?

If you close your unit within 1 year of receiving the subsidy, you'll need to refund 80% of the amount. If you close within 2 years, it's 60%, and if you close within 3 years, it's 50%.

What proof do I need to show for the date when my hotel actually started commercial operations?

You should provide copies of your first lodging bill, catering bill, bill for the first service provided, or any other valid legal document that proves the commercial operation start date.

Is there a minimum period my hotel must remain open after I receive the subsidy?

Yes, you are required to keep the unit operational for at least three years from the date you receive the subsidy. You also need to submit a self-declaration annually confirming its continuous operation.

Are there any special benefits for entrepreneurs from Scheduled Caste or Scheduled Tribe communities?

Yes, if you are from an SC/ST category and own 100% of the tourism project, you are eligible for an additional 5% capital investment subsidy.

Will expenses made before my hotel officially opened count towards the capital cost for the subsidy?

Expenditure incurred up to 5 years before the commencement date can be considered valid if the project was executed and operated in a single phase.

Does the scheme offer extra incentives for projects located in remote or less-developed areas?

Yes, projects in such areas can get an additional 5% Capital Investment Subsidy. The minimum investment requirement and the room ceiling are also reduced by 50%.

How do I submit my application for this scheme?

Applications must be submitted online through the State Government's Invest Portal or the Single Window System. You can also approach the Madhya Pradesh Tourism Board or the relevant department.

Who needs to certify the capital cost of my project for the subsidy application?

The total capital cost must be certified by a certified Engineer/Valuer, and the total project cost needs to be certified by a Chartered Accountant (CA).

Is there a limit to the total subsidy amount I can receive?

Yes, the subsidy is calculated as 15% of your fixed capital investment, but there is a maximum ceiling of ₹2,00,00,000/- for the subsidy amount.

Can I apply for this subsidy if I plan to expand my existing operational hotel?

Yes, expansion projects are eligible. However, there must be at least a 50% increase in the staying capacity of your current establishment to qualify.

Does the policy have a specific period during which the heritage hotel must be established and operational?

Yes, your heritage hotel project must be established and operationalized during the operative tenure of the policy to be eligible for the capital investment subsidy.

Are there any requirements regarding local employment for this subsidy?

Yes, it is mandatory to provide employment to 70% of your total staff members from the resident population of Madhya Pradesh to be eligible for this capital subsidy.