MP Tourism Capital Investment Subsidy — 15% Up to ₹5 Cr for Hotels & Resorts

Madhya Pradesh is trying to expand its premium room supply, and the state's Department of Tourism is using a capital investment subsidy to draw private money into that segment. The scheme is aimed at developers building a brand-new Deluxe, Three Star or higher category hotel or resort.

The Madhya Pradesh Tourism Board implements the programme. Support works out to 15% of the approved fixed capital investment, capped at ₹5,00,00,000 (₹5 crore). The entry bar is deliberately high: a project must carry at least ₹10,00,00,000 (₹10 crore) of capital expenditure and deliver no fewer than 50 lettable air-conditioned rooms.

Because the calculation runs off fixed capital investment, the subsidy acts as a partial offset against the heaviest costs a hotel developer faces. That matters in a state where high-category lodging is still thin relative to the visitor numbers it wants to attract.

The wider objective is tourism infrastructure. Better accommodation is meant to pull in domestic and international travellers who expect higher standards, and the construction and operation of these properties is expected to create jobs and support local economies. Applications move through the state's single-window Invest Portal, and there is no fixed closing date.

• Capital investment subsidy of 15% on approved fixed capital investment
• Capped at ₹5 crore per eligible unit
• Built for new Deluxe, Three Star or higher category hotels and resorts
• Requires a minimum of ₹10 crore in capital expenditure
• Property must have at least 50 lettable air-conditioned rooms
• Must stay operational 3 years, or the subsidy is refunded on a graded scale

This is a scheme for private investors putting up new accommodation in Madhya Pradesh. To qualify, the project has to clear several fixed thresholds.

• Category: a newly established Deluxe, Three Star or higher category hotel or resort.
• Capital expenditure: a minimum of ₹10,00,00,000 (₹10 crore), as approved by the department.
• Room count: at least 50 lettable air-conditioned rooms.
• Applicant type: the policy is framed to promote private investment in the sector.
• Filing window: the subsidy application must be submitted online within one year of the date commercial operations commence.
• No overlap: a unit that has already claimed Investment Promotion Assistance is not entitled to this capital subsidy.

The property must sit within Madhya Pradesh, since the scheme is run by the state's Tourism Board to build up tourism infrastructure across the state.

MP Tourism Capital Investment Subsidy — 15% Up to ₹5 Cr for Hotels & Resorts is open to startups at any stage. It is open to startups registered anywhere in India.

MP Tourism Capital Investment Subsidy — 15% Up to ₹5 Cr for Hotels & Resorts accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

The headline benefit is a Capital Investment Subsidy of 15% on the fixed capital investment the department approves. Payout per eligible unit is capped at ₹5,00,00,000 (₹5 crore). The ceiling holds regardless of how much larger the underlying project is.

Nothing in the scheme requires the promoter to surrender equity or pay interest — it is a subsidy, not an investment or a loan. The state simply picks up part of the project cost.

• Subsidy rate: 15% of approved fixed capital investment
• Maximum subsidy: ₹5 crore
• Minimum project spend to be considered: ₹10 crore

There is a long-term commitment attached. The hotel or resort must stay operational for at least three years from the date the subsidy is availed. If it shuts down earlier, the subsidy is refunded on a graded scale — 80% if the unit closes within one year, 60% within two years, and 50% within three years. This condition keeps the supported asset running and serving the state's tourism sector instead of being wound up soon after disbursal.

MP Tourism Capital Investment Subsidy — 15% Up to ₹5 Cr for Hotels & Resorts is offered by Madhya Pradesh Tourism Board, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

There is no competitive round or pitch here. The subsidy is an entitlement tied to eligibility, so the outcome turns on verification rather than selection.

Once an application is submitted through the Invest Portal, the Madhya Pradesh Tourism Department / Tourism Board reviews the application and every supporting document. The scrutiny covers:

• whether the project falls in the Deluxe, Three Star or higher category
• whether the minimum capital expenditure of ₹10 crore has genuinely been incurred
• whether the property has at least 50 lettable air-conditioned rooms
• proof that commercial operations have commenced

Only applications that satisfy all of these checks move forward for processing of the subsidy claim.

Before you apply to MP Tourism Capital Investment Subsidy — 15% Up to ₹5 Cr for Hotels & Resorts, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

MP Tourism Capital Investment Subsidy — 15% Up to ₹5 Cr for Hotels & Resorts is best suited for startups in India seeking non-dilutive funding of ₹1.5Cr – ₹5Cr. If that describes your startup, review the eligibility criteria above before applying.