Car Loan Scheme 2026
This scheme by the Madhya Pradesh Tourism Department offers a 25% capital investment subsidy, up to ₹3,00,00,000, Read More... to private investors for developing essential tourism infrastructure on leased land. Read less
Details
Looking to build crucial infrastructure for your tourism project in Madhya Pradesh? The state government, through its Tourism Department, has a scheme to help you out. It’s designed to boost private investment in developing key facilities like power, water, approach roads, and drainage systems on land leased from the Tourism Department.
What Is This Scheme?
The 'Capital Investment Subsidy for Creation of Infrastructure' scheme aims to encourage private players to invest in building necessary infrastructure for tourism ventures. This includes facilities like a reliable power supply, clean water, accessible approach roads, and proper sewage and drainage systems. The scheme is managed by the Madhya Pradesh Tourism Board.
Who Can Benefit From This Scheme?
This scheme is for private investors and entities who are setting up or planning to set up a tourism project. A key requirement is that you must have obtained the land or heritage assets on a lease basis from the Madhya Pradesh Tourism Department. You need to invest a minimum of ₹50,00,000 in creating the specified infrastructure to be eligible.
Why This Scheme Is Important
By providing financial support for infrastructure development, this scheme helps make tourism projects more viable and attractive. It ensures that essential services are in place, improving the overall visitor experience and contributing to the growth of the tourism sector in Madhya Pradesh. It encourages investment in areas that might otherwise be challenging to develop.
Objective
Benefits
Sources and references
Eligibility Criteria
- You must be a private investor or a company planning to set up a tourism project.
- You need to have acquired the land or heritage property from the Tourism Department through a lease agreement.
- You are required to develop infrastructure such as electricity, water supply, approach roads, and sewage/drainage systems on the leased property.
- Your minimum capital expenditure on creating this infrastructure must be ₹50,00,000, as approved by the department.
- The tourism project must be established and start operating within the policy's valid period.
- If you claim this capital subsidy, you cannot also claim Investment Promotion Assistance.
How To Apply
All applications for land allocation, permissions, and this subsidy should be submitted online. You can do this through the State Government's Invest Portal or the Single Window System.
Documents Required
To apply for the Capital Investment Subsidy, you'll need to provide a range of documents. These typically include:
- Photocopies of your first lodging bill, catering bill, or any service bill.
- Colour photographs of your unit or project from three different angles.
- A copy of your Vendor Form.
Identity and Business Proof
- For companies: Copy of Memorandum and Articles of Association.
- For partnerships: Copy of Partnership Deed and Certificate of Registration.
- For proprietary concerns: Name and Address of Proprietor and Certificate of Registration.
- Copy of the Certificate of Establishment of your Firm/Company.
- Copy of your PAN Card.
- Copy of Photo ID Proof (like Aadhaar Card, Voter ID, or Passport).
Land and Project Details
- Copies of Sale Deed or Lease Deed (your title document).
- Copy of your Project Report.
- Copy of the Map Sanctioned by the Local Authority (e.g., Municipal Corporation, Municipality).
- Copy of the Building Permission granted by the relevant authority.
- Copy of the Approved Floor Plan.
- Completion Certificate from the Competent Authority.
Financial Documents
- A certificate for the Total Project Cost, certified by a Certified Engineer/Valuer.
- A certificate for the Total Capital Cost, certified by a Chartered Accountant.
- Details of any debt from the concerned financial institution.
- A cancelled cheque of your Firm/Company.
Official Sources
For the most accurate and up-to-date information, always refer to the official channels. Specific application links and detailed guidelines can usually be found on the Madhya Pradesh Tourism Board's website or the state's investment portal.
FAQ’s
What proof do I need to show the date my tourism unit started commercial operations?
You should submit copies of your first lodging bill, catering bill, bill for services provided, or any other legally acceptable document that confirms your commercial operation date.
If I decide to set up my tourism project in a remote location, are there any extra financial benefits available?
Yes, projects in remote or distant areas get an additional 5% Capital Investment Subsidy. The minimum investment required and the room limit are also reduced by 50% for these projects.
How long do I need to keep my tourism unit running after receiving the subsidy?
You must keep the unit operational for at least 3 years from the date you receive the subsidy. You also need to submit a yearly self-declaration confirming that the unit is still in operation.
Can I claim subsidies from multiple categories if my tourism unit qualifies for more than one?
No, if your unit is eligible for benefits under more than one category, you must choose and claim the subsidy from only one category.
What happens to the subsidy if I have to close my unit within three years of receiving it?
If your unit closes down within the first year of receiving the subsidy, you must refund 80% of the amount. If it closes within two years, you refund 60%, and if it closes within three years, you refund 50% of the subsidy amount.
I already have a hotel. Can I get a subsidy if I expand its capacity?
Expansion projects are eligible for the subsidy, provided that the expansion increases the existing establishment's staying capacity by at least 50%.
Are there any additional incentives for entrepreneurs from Scheduled Caste or Scheduled Tribe backgrounds?
Yes, entrepreneurs from SC/ST categories who own 100% of the tourism project are eligible for an additional 5% capital investment subsidy.
Is there a limit on the total subsidy amount I can receive?
Yes, the subsidy is calculated as a percentage of your fixed capital investment, but there is a maximum ceiling of ₹3,00,00,000 for the subsidy amount.
Will the capital expenditure I incurred before the unit officially started operating be counted towards the grant?
Expenditure incurred up to 5 years before the commencement of the unit is considered valid, provided the project was executed and operated continuously as a single entity.
Whose certification is needed to prove the capital cost of my project when applying for the subsidy?
The total capital cost must be certified by a Certified Engineer or Valuer. Additionally, the total project cost needs to be certified by a Chartered Accountant.
Do I have to meet any employment criteria related to local residents to be eligible for this capital subsidy?
Yes, it is mandatory to employ 70% of your total staff from the residents of Madhya Pradesh to be eligible for the capital subsidy.
Is there a timeframe within which my project must be set up to qualify for these capital investment benefits?
Your project must be established and become operational during the active period of this policy to be entitled to the capital investment subsidy.
When do I need to submit my subsidy application after my unit has started its commercial operations?
You must submit your application within 1 year from the date of commencement of commercial operations to be considered eligible for the subsidy.
How should I submit my application for land allocation or permissions to ensure it's processed correctly?
All applications for land allocation, permissions, and subsidies should be submitted online through the State Government's Invest Portal or the Single Window System.
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