Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel

The beneficiary is entitled to a Capital Investment Subsidy of 15% against the Fixed Capital Investment.

The maximum ceiling for the subsidy is ₹5,00,00,000/-.

The subsidy is granted for the expansion of established Star, Deluxe, Standard Hotels, Resorts, or Heritage Hotels.

Conditions

The unit must maintain continuous operation and submit a self-declaration on or before the 15th of April every year regarding the continuous operation of the unit for at least three years from the date of availing the subsidy.

If the unit closes within 1 year from the date of receipt of the subsidy, 80% of the subsidy amount has to be refunded.

If the unit closes within 2 years from the date of receipt of the subsidy, 60% of the subsidy amount has to be refunded.

If the unit closes within 3 years from the date of receipt of the subsidy, 50% of the subsidy amount has to be refunded.

The applicant must have an established Star, Deluxe, or Standard Hotel, Resort, or Heritage Hotel.

The applicant must incur a minimum capital expenditure of ₹1,00,00,000/- as approved by the department.

The applicant must ensure an expansion in terms of a minimum of 50% increased staying capacity to be eligible for the subsidy.

The applicant must obtain the necessary certification of heritage hotels/tourism projects from the Tourism Department to avail the exemptions/facilities.

The applicant must submit the application for capital subsidy within 1 year from the date of commencement of operation.

The applicant must ensure that the investment made prior to 3 years from the date of commencement of operation is not calculated for the capital subsidy.

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.

Legal Entity Documents

Copy of Proof of Legal Authorized Person from Unit

Copies of Memorandum and Articles of Association (if Public/Private Limited Company)

Copy of Partnership Deed and Certificate of Registration (if Partnership)

Name and Address of Proprietor/Certificate of Registration (if Proprietary Concern)

Details and Registration from Competent Authority (if Legal Entity Other Than Above)

Copy of Certificate of Establishment of Firm/Company

Property and Land Documents

Certified Khasra (Land Record Ownership Document)

Site Map

Copy of Registered Sale Deed or Lease Deed (Title Document)

Project and Planning Documents

Copy of Project Report

Certificate from HRACC (if Applicable)

Copy of Certificate from Town and Country Planning (TNCP)

Copy of Map Sanctioned by the Local Authority (Municipal Corporation, Municipality etc.)

Copy of the Building Permission Granted by the Appropriate Authority

Copy of Approved Floor Plan

Completion Certificate from Competent Authority

Financial Documents

Total Project Cost Certificate Certified by Certified Engineer/Valuer

Total Capital Cost Certificate Certified by CA

Debt Details from Concerned Financial Institution

Operational Documents

Proof of Date of Commercial Operation (Photocopy of First Lodging Bill, Catering Bill, or Bill of Service/Facility Provided)

Photographs from 3 Different Angles (JPG Format Not More Than 500 KB Size)

Banking and Identity Documents

Cancelled Cheque of the Firm/Company

Copy of PAN Card

Copy of Photo ID Proof (Aadhaar Card/Voter ID/Passport etc.)

Copy of Vender Form