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

The subsidy is 15% of the fixed capital investment approved by the department, and the total payable to any one unit is capped at ₹5,00,00,000 — that is ₹5 crore. The ceiling applies no matter how much larger the project happens to be.

No. The scheme runs on a rolling basis with no fixed closing date, and applications are accepted online through the state's Invest Portal. The deadline that does apply is project-side: your subsidy application has to be filed within one year of the date your hotel or resort begins commercial operations.

Only newly established properties in the Deluxe, Three Star or higher category that sit in Madhya Pradesh. On top of the category requirement, the project needs at least ₹10,00,00,000 (₹10 crore) in capital expenditure and a minimum of 50 lettable air-conditioned rooms. The policy is written around private investment in the sector.

The Invest Portal registration accepts a range of organisation types — Public Limited Company, Private Limited Company, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO or Individual — along with the firm or company name and the name of the authorised person. The scheme itself is aimed at private investors.

No. This is a subsidy, so the government does not take a stake in your company or your property and you are not required to repay the amount in the normal course. The only repayment situation arises if the unit shuts down within three years of availing the subsidy.

You have to submit the application online through the Invest Portal within one year from the date your hotel or resort commences commercial operations. Applying earlier rather than later keeps the filing comfortably inside that window.

Expect to provide your organisation type, firm or company name and authorised person's name, plus an active email ID and mobile number, since your application number, user ID and password are sent to the registered email. You also need proof of operation, such as the first lodging or catering bill, and all mandatory permissions secured through the online single-window system. Documents must be uploaded in the specified formats, with photographs in JPG.

Start by registering as a Vendor / Investor on the Madhya Pradesh Invest Portal at https://sws.invest.mp.gov.in/. Basic registration is free; once submitted, a user ID and password are sent to your registered mobile number. Log in, complete your profile, obtain all mandatory permissions through the single-window system, finish construction and begin commercial operations. Then submit the capital subsidy application online within a year of commencing operations, after which the Tourism Department or Board verifies the claim. The scheme details also sit in the state's Tourism Policy 2025 document at https://tourism.mp.gov.in/Uploaded%20Document/PoliciesandNotifications/Tourism%20Policy%202025.pdf.

The subsidy becomes repayable on a graded scale. You would refund 80% of it if the unit closes within one year, 60% if it closes within two years, and 50% if it closes within three years. Staying operational for the full three years from the date of availing the subsidy avoids any refund.

No. A unit that has already claimed Investment Promotion Assistance is not entitled to this capital subsidy, so you cannot draw both for the same unit.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for MP Tourism Capital Investment Subsidy — 15% Up to ₹5 Cr for Hotels & Resorts, though having it can strengthen your application and unlock other benefits.

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 is offered by Madhya Pradesh Tourism Board, a government body. It is provided as non-dilutive funding.