Pandit Omkarnath Classical Music Festival and Awards 2026

This scheme offers central government funding to boost tourism and hospitality education by helping establish new institutes, Read More... expand existing ones, and upgrade their facilities and equipment. Read less

Details

The Ministry of Tourism, Government of India, has a special scheme to support the growth of the tourism and hospitality sector. It's called the 'Scheme of Financial Assistance to IHMs/FCIs/IITTM/ICI/NCHMCT/PSUs'. The main goal is to provide financial help for developing various projects related to tourism, hospitality, and similar industries.

What Is This Scheme?

This scheme is designed to offer financial backing for setting up new educational institutions in hotel management (IHMs), food crafts (FCIs), and branches of institutes like IITTM, ICI, and NCHMCT. It also helps in expanding, modifying buildings, or replacing old equipment in existing Central IHMs, IITTM centres, NCHMCT, and ICI centres.

Who Can Benefit From This Scheme?

Government bodies, state governments, union territory administrations, and registered societies looking to establish or improve institutions that train students in hotel management, culinary arts, and travel and tourism can benefit. This includes both new setups and upgrades for existing facilities.

Why This Scheme Is Important

By providing financial assistance, the scheme aims to increase the number and quality of trained professionals in the crucial tourism and hospitality sectors. This directly contributes to capacity building, better education standards, and ultimately, the growth of India's tourism industry.

Objective

This scheme offers central government funding to boost tourism and hospitality education by helping establish new institutes, expand existing ones, and upgrade their facilities and equipment.

Benefits

Financial Assistance and Recognition:Eligible male artists receive a prestigious award that acknowledges their lifelong dedication to Indian classical music.

Sources and references

Guidelines (Scheme No. 410)

Eligibility Criteria

The applicant must be a Society formed by the Central Government, State Government, or Union Territory Administration and registered under the Societies Registration Act 1860.
Autonomous societies formed by the Central Government, like IITTM, NCHMCT, or ICI, are also eligible.
For New State Institutes of Hotel Management (SIHM):

The Society must be registered by the Central/State/UT Government.
The Institute should be run by the State Government or UT Administration's Society.
Developed land, free from encumbrances, measuring at least 5 acres must be transferred.
Basic services like electricity and water supply must be committed by the State/UT.
Land transfer documents in the Society's name are required. If direct transfer isn't possible, the land must be demarcated for the IHM and in possession of the State/UT Tourism Department, with written reasons for the difficulty in transfer.
For hilly areas or large urban agglomerations (Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Delhi), the land requirement is reduced to 2 acres, adhering to affiliation norms.

For SIHM in an Existing Building:

The building provided by the State/UT must be suitable for the IHM.
Other general conditions for new IHMs must be met.

For Upgrading an Existing Food Craft Institute (FCI) to SIHM:

The proposal must be justified and feasible.
The existing FCI Society must be dissolved, and a new SIHM Society registered.
Other conditions for setting up a new IHM apply.

For New Food Craft Institute (FCI):

The FCI Society must be registered by the State Government.
Developed land, free from encumbrances, measuring at least 3 acres must be transferred to the FCI Society.
Basic services like electricity and water supply must be committed by the State/UT.
For hilly areas or large urban agglomerations, the land requirement is reduced to 1 acre, adhering to affiliation norms.

For FCI in an Existing Building:

The existing building must be provided free of cost by the State/UT and be suitable for the FCI.
The proposal must be feasible.

For New Centres of IITTM, ICI, NCHMCT:

Developed land measuring at least 5 acres must be transferred or already available with the Central Government Institution's Societies.
Basic services must be committed by the State/UT.
For hilly areas or large urban agglomerations, the land requirement is reduced to 2 acres.

For Applied Training Centre (ATC) attached to Central IHMs:

The Institute must have 2 acres of surplus land or the State Government must provide additional land.
No hotels should be within a 2 km radius of the proposed site.

Post-Selection Conditions:

Institutes must follow academic and admission norms prescribed by NCHMCT.
State Governments must provide an undertaking to follow these norms.
Admissions to IHMs should be based on a joint entrance examination.
If an SIHM is affiliated with a university, its curriculum must match NCHMCT/IGNOU syllabus, and the university must be UGC-recognised.
Any expenditure exceeding the Ministry's assistance must be borne by the State Government/UT Administration.

How To Apply

The application process typically involves submitting a detailed project report along with other required documents to the Ministry of Tourism. Specific details regarding the submission address and any online application portals can be found in the official scheme guidelines or through direct contact with the Ministry.

Submission of Detailed Project Report: The State Government or relevant society must prepare and submit a comprehensive Detailed Project Report.
Application Form and Documents: Complete the application form and gather all necessary documents as specified by the Ministry.
Submission: Submit the application and all supporting documents to the Ministry of Tourism. The exact address for submission is usually provided in the scheme guidelines. For online applications, refer to the official website.
Evaluation: The Ministry will evaluate the proposal based on the eligibility criteria and project feasibility.
Sanction and Fund Release: Upon approval, the financial assistance will be sanctioned, and funds will be disbursed in installments as per the scheme's guidelines through the Central Nodal Agency (NCHMCT).

Official Contact/Submission Details:

The Central Nodal Agency (CNA) for fund disbursement is the National Council for Hotel Management & Catering Technology (NCHMCT). Implementing agencies should follow the procedures outlined by the Ministry of Tourism and NCHMCT.

Documents Required

During Application:

Detailed Project Report (DPR) by the State Government.
Society Registration Certificate under the Societies Registration Act 1860 (for IHM/FCI/SIHM).
Land Transfer Documents in the Society's Name.
Written justification if land is not transferred to the Society.
Undertaking to follow NCHMCT academic/admission norms (for IHM/SIHM).
Building suitability certification by NCHMCT (for IHMs in existing buildings).
Details and cost of additions/alterations/new components, approved by the Building Committee and Board of Governors.

During Fund Disbursal:

Award of Contract by the Implementing Agency (for the first installment).
Utilization Certificate (UC) for at least 75% of the previous installment(s).
Supporting documents for the UC: Physical progress report, expenditure statement, audited accounts.
Justification for additional funds due to cost escalation, with approvals (if applicable).
Completion Certificate (for the final 5% installment).
Documentation showing credit to the Ministry (for the final 5% installment).

Official Sources

For the most accurate and up-to-date information regarding specific documents and submission procedures, please refer to the official website of the Ministry of Tourism, Government of India.

FAQ’s

What are the land ownership requirements when applying to establish a new State Institute of Hotel Management?

You must ensure that a piece of developed land, free from any legal claims or encumbrances, measuring at least five acres, is transferred into the name of the Institute of Hotel Management Society. If direct transfer to the Society isn't possible, the land must be clearly designated for the IHM and held by the State/UT Tourism Department, with valid written reasons provided for the transfer difficulty.

If an existing Food Craft Institute is to be upgraded to a State Institute of Hotel Management, what changes are needed in the governing body?

The State Government must first dissolve the existing Food Craft Institute Society. Subsequently, a new Society must be formed and registered under the Societies Registration Act 1860, specifically in the name of the State Institute of Hotel Management.

What is the minimum land size needed if a new Food Craft Institute is proposed for a hilly region or a major city?

For setting up a new Food Craft Institute in hilly areas or within the designated large Urban Agglomeration cities, the required developed land size is reduced to a minimum of one acre.

What specific action is required before the government will consider financial aid for setting up a new Institute of Hotel Management?

Central Financial Assistance will only be considered after the Institute of Hotel Management Society has been officially registered under the Societies Registration Act 1860 by the respective government body.

What are the financial limits for building construction and equipment purchase when establishing a new State Institute of Hotel Management?

For constructing a new State Institute of Hotel Management, the financial ceiling is ₹10,00,00,000/- for the building and ₹2,50,00,000/- for equipment purchase. An additional assistance of up to ₹4,00,00,000/- is available for building a hostel block.

Is there any financial assistance available for setting up a Food Craft Institute using an already existing building?

Yes, financial assistance is provided for setting up a Food Craft Institute in an existing building. The Central Financial Assistance for the academic block construction is capped at ₹2,80,00,000/- or 75% of the construction cost, whichever is less, and up to ₹1,15,00,000/- for equipment purchase.

What legal registration is mandatory for an entity to be eligible for this scheme's financial assistance?

The applicant must be a Society that is formed by the Central Government, State Government, or Union Territory Administration, and it must be duly registered under the Societies Registration Act 1860.

If land transfer to the Society is proving difficult, what alternative arrangement for land is acceptable for setting up a new Institute of Hotel Management?

If direct transfer to the Society is not feasible, the land must be clearly demarcated for the Institute of Hotel Management and be in the possession of the concerned State Government or Union Territory Administration, under the name of the Tourism Department. The reasons for the difficulty in transfer must also be recorded in writing and accepted by the Central Government.

What is the minimum land area required if a new Centre for the Indian Institute of Tourism & Travel Management is to be established?

For setting up a new Centre for institutions like IITTM, the State Government or UT Administration must transfer a piece of developed land, free from encumbrances, measuring not less than five acres.

What is the maximum financial assistance a State/UT can receive for constructing a new Food Craft Institute?

The overall Central Financial Assistance for setting up a new Food Craft Institute is ₹5,50,00,000/-, with a ceiling of ₹4,35,00,000/- for building construction and ₹1,15,00,000/- for equipment.

What conditions must be met regarding academic standards for IHMs set up with this financial aid?

Institutes of Hotel Management must adhere to the academic and admission norms set by the National Council for Hotel Management & Catering Technology. For any SIHM affiliated with a university, its curriculum must match the NCHMCT/IGNOU syllabus, and the university must be recognized by the UGC.

Can the financial assistance ceilings for different project components be adjusted?

Yes, adjustments to the financial assistance ceilings for construction of academic blocks, hostels, and equipment purchase are allowed, but only up to a maximum of 10% on a case-to-case basis and strictly before the project is sanctioned. No flexibility is permitted after the project has been approved.