Heritage Hotel Capital Investment Subsidy, Madhya Pradesh — Up to ₹5 Cr
Madhya Pradesh offers a 15% capital investment subsidy, capped at ₹5 crore, to private investors who take government heritage assets on lease from the Tourism Department and run them as certified heritage hotels.
- Funding amount
- ₹1.5Cr – ₹5Cr (subsidy)
- Funding type
- Subsidy
- Provider
- Tourism Department, Government of Madhya Pradesh (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
Madhya Pradesh holds a large stock of government-owned heritage properties, and this scheme is the Tourism Department's way of bringing private money into their upkeep. An investor takes such an asset on lease, develops it into a heritage hotel, and the state shares a portion of the fixed capital that goes into the project.
The scheme is run and administered by the Madhya Pradesh Tourism Board. Support comes as a straight percentage of your fixed capital investment, with the payout capped, and the state layers on top-ups for entrepreneurs from SC/ST backgrounds and for properties coming up in remote parts of the state.
Everything is routed through the state government's Invest Portal, which acts as a single window: you register there as an investor, obtain the approvals needed to build and operate a hotel, and eventually file your subsidy claim on the same platform. There is no application window to wait for — the scheme stays open on a rolling basis.
Highlights
- 15% of fixed capital investment, capped at ₹5 crore
- Minimum approved capital expenditure of ₹10 crore
- An extra 5% for SC/ST entrepreneurs and an extra 5% for remote-area projects
- Only for heritage assets taken on lease from the MP Tourism Department
- Rolling applications — the claim must be filed within one year of starting operations
- Run by the Madhya Pradesh Tourism Board through the state Invest Portal
Who can apply
The scheme is built for private investors, so the applicant has to be a proprietary concern, a partnership firm, a company or another legal entity rather than a government body.
- The heritage asset must be taken from the Tourism Department on a lease basis.
- That lease has to come through the open bidding process run by the Empowered Committee.
- The project must involve a minimum capital expenditure of ₹10,00,00,000, as approved by the department.
- The heritage hotel must be certified by the Tourism Department under its framed rules and procedures.
- The project is expected to be executed and operated in one go. Where that is not the case, capital expenditure incurred up to five years prior to commencement is still taken into account.
On the Invest Portal, applicants can register under a range of organisation types — Public Limited Company, Private Limited Company, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO or an Individual.
Heritage Hotel Capital Investment Subsidy, Madhya Pradesh — Up to ₹5 Cr is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Heritage Hotel Capital Investment Subsidy, Madhya Pradesh — Up to ₹5 Cr 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.
What the funding covers
The core benefit is a capital subsidy equal to 15% of the fixed capital investment made in the heritage hotel project, subject to a maximum ceiling of ₹5,00,00,000. Since the scheme expects a minimum approved capital expenditure of ₹10 crore, the subsidy in practice falls somewhere between ₹1.5 crore and ₹5 crore depending on what the project actually spends.
Two additional top-ups are available on top of the base subsidy:
- SC/ST entrepreneurs who hold 100% ownership of the tourism project are entitled to a further 5% capital investment subsidy.
- Projects established in remote areas of the state also qualify for an extra 5% capital investment subsidy.
Beyond the cash, the scheme comes with regulatory support — the Tourism Department's own approval and certification route for heritage hotels, which is what formally establishes the property as a heritage hotel under the scheme.
About the provider
Heritage Hotel Capital Investment Subsidy, Madhya Pradesh — Up to ₹5 Cr is offered by Tourism Department, Government of Madhya Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Support is released only after the department is satisfied that the project has actually been built and is running, so the process mixes an online application with physical and documentary verification.
- Register on the Invest Portal. Sign up as a "Vendor / Investor" on the state's Invest Portal, choosing your type of organisation and entering the firm or company name, the authorised person's details, and a working email ID and mobile number. A User ID and password are sent to the registered mobile number.
- Complete your profile and secure permissions. Log in, finish the profile, and obtain all mandatory permissions through the online single-window system within the stipulated time frames. Complete construction of the heritage hotel, meet the capital expenditure checkpoint set out for this stage (₹3,00,00,000), and begin commercial operations — keeping proof such as the first lodging or catering bill.
- File the subsidy claim online. The capital subsidy application has to be submitted within one year from the date commercial operations begin, with all supporting documents uploaded in the prescribed formats (photographs, for example, in JPG).
- Verification and disbursement. The Tourism Department / Madhya Pradesh Tourism Board verifies the application and the supporting papers, and then processes the claim for disbursement. Verification can involve site visits or documentary checks to confirm the unit has operated continuously for the required period.
The subsidy also carries clawback conditions: if the unit closes within one year of receiving it, 80% must be refunded; within two years, 60%; and within three years, 50%. Continuous operation for at least three years is expected.
Documents you’ll need
Before you apply to Heritage Hotel Capital Investment Subsidy, Madhya Pradesh — Up to ₹5 Cr, 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.
Who this is best for
Heritage Hotel Capital Investment Subsidy, Madhya Pradesh — Up to ₹5 Cr 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.
Frequently asked questions
How much subsidy does this scheme actually pay out?
You receive 15% of the fixed capital investment made in the project, capped at ₹5,00,00,000. Because the scheme also requires a minimum approved capital expenditure of ₹10,00,00,000, the payout in practice lands between ₹1.5 crore and ₹5 crore, depending on what you spend.
Is there a last date to apply?
No. Applications are accepted on a rolling basis, so there is no fixed window or annual cut-off. The one deadline that does matter sits at the claim stage — your capital subsidy application must be submitted online within one year from the date your heritage hotel starts commercial operations.
Who is eligible for the scheme?
You need to be a private investor — a proprietary concern, partnership firm, company or another legal entity — and you must have taken a heritage asset from the Tourism Department on lease. That lease has to come through the Empowered Committee's open bidding process, the project needs a minimum capital expenditure of ₹10,00,00,000 as approved by the department, and the property must finally be certified as a heritage hotel by the Tourism Department.
Which entity types can apply?
The Invest Portal allows registration as a Public Limited Company, Private Limited Company, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO or an Individual. Whichever structure you pick, the applicant still has to be a private investor holding the leased heritage asset from the Tourism Department.
Does the government take equity in my heritage hotel?
No. This is a capital investment subsidy paid by the Tourism Department, so no equity, shares or ownership stake in your project is taken in return. The support is non-dilutive.
Are there any additional subsidies beyond the 15%?
Yes, there are two top-ups of 5% each. Entrepreneurs from the SC/ST category who own 100% of the tourism project receive an additional 5% capital investment subsidy, and projects set up in remote areas of Madhya Pradesh qualify for a further 5% capital investment subsidy.
What happens if I close the hotel after receiving the subsidy?
Clawback conditions apply. You must refund 80% of the subsidy if the unit closes within one year of receiving it, 60% if it closes within two years, and 50% if it closes within three years. The expectation is that the hotel operates continuously for at least three years.
Can capital expenditure incurred before the project started still be counted?
Yes, within limits. The scheme expects the entire project to be executed and operated in one go, but where that is not the case, capital expenditure incurred up to five years prior to commencement is still considered.
What documents are needed for the claim?
You will need evidence that the mandatory permissions were obtained through the single-window system, proof that commercial operations have begun — such as the first lodging or catering bill — and the project's capital expenditure details. Supporting documents must be uploaded in the prescribed formats; photographs, for instance, have to be in JPG.
How and where do I apply?
Registration and the subsidy claim both happen on the Madhya Pradesh Government's Invest Portal at https://sws.invest.mp.gov.in/, where you sign up as a "Vendor / Investor", complete your profile, secure permissions and later file the claim. The scheme's rules are published by the Tourism Department on tourism.mp.gov.in, and the Tourism Department / Madhya Pradesh Tourism Board verifies applications before disbursing the subsidy.
Is DPIIT recognition required for Heritage Hotel Capital Investment Subsidy, Madhya Pradesh — Up to ₹5 Cr?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Heritage Hotel Capital Investment Subsidy, Madhya Pradesh — Up to ₹5 Cr, though having it can strengthen your application and unlock other benefits.
Who offers Heritage Hotel Capital Investment Subsidy, Madhya Pradesh — Up to ₹5 Cr?
Heritage Hotel Capital Investment Subsidy, Madhya Pradesh — Up to ₹5 Cr is offered by Tourism Department, Government of Madhya Pradesh, a government body. It is provided as non-dilutive funding.
How do I apply for Heritage Hotel Capital Investment Subsidy, Madhya Pradesh — Up to ₹5 Cr?
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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