Heritage Hotel Capital Investment Subsidy, Madhya Pradesh — Up to ₹5 Cr — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.