Madhya Pradesh Hotel Expansion Subsidy — 15% Up to ₹5 Crore — Frequently Asked Questions
Answers to the questions founders most often ask about Madhya Pradesh Hotel Expansion Subsidy — 15% Up to ₹5 Crore — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much funding does this scheme actually provide?
You receive 15% of the fixed capital investment made for your expansion project, and the total cannot exceed ₹5,00,00,000. So the subsidy scales with what you spend, until it hits that ceiling.
Who is eligible to apply?
Owners of established Star, Deluxe or Standard hotels, resorts and heritage hotels in Madhya Pradesh. Because it is an expansion scheme, the property must already be running — this is not open to someone planning a first build.
How much expansion is required to qualify?
Your staying capacity has to increase by at least 50%. A smaller addition to the room count will not meet the eligibility condition, however much you invest.
Is there a minimum investment threshold?
Yes. The project must involve capital expenditure of at least ₹1,00,00,000, as approved by the department.
What is the application deadline?
The scheme itself is rolling and stays open, so there is no last date to register interest. The binding deadline sits at the project level: your subsidy claim has to be submitted online within one year from the date commercial operations commence.
Does the government take equity or expect repayment?
Neither. This is a subsidy, so the amount is non-repayable and no equity or ownership stake is taken in your hotel or resort.
Will older investments in the property be counted?
No. Capital spending made more than three years before the date your operations commence is excluded from the subsidy calculation, so keep the claim tied to recent project expenditure.
Do heritage hotels need any special certification?
Yes. Heritage hotels and tourism projects must obtain the necessary certification from the Tourism Department to be considered under the scheme.
What happens if I shut the unit after receiving the subsidy?
You have to refund a portion of it. Closing within 1 year means returning 80% of the subsidy, within 2 years means 60%, and within 3 years means 50%. This condition is meant to keep subsidised capacity in operation.
How and where do I apply?
Applications go through the Madhya Pradesh Government's Invest Portal at https://sws.invest.mp.gov.in/. Register there as a Vendor/Investor with your organisation type, firm or company name, authorised person's name, email and mobile number; the portal sends your user ID and password to the registered mobile number, and you then log in and complete your profile. From there you secure the mandatory permissions through the online single-window system, complete construction meeting the ₹1,00,00,000 expenditure requirement, begin commercial operations, and file the capital subsidy application online within a year of that start date, uploading the required documents in the specified formats.
Is DPIIT recognition required for Madhya Pradesh Hotel Expansion Subsidy — 15% Up to ₹5 Crore?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Madhya Pradesh Hotel Expansion Subsidy — 15% Up to ₹5 Crore, though having it can strengthen your application and unlock other benefits.
Who offers Madhya Pradesh Hotel Expansion Subsidy — 15% Up to ₹5 Crore?
Madhya Pradesh Hotel Expansion Subsidy — 15% Up to ₹5 Crore is offered by Tourism Department, Government of Madhya Pradesh, a government body. It is provided as non-dilutive funding.
How do I apply for Madhya Pradesh Hotel Expansion Subsidy — 15% Up to ₹5 Crore?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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