MP Heritage Hotel Capital Subsidy for Proprietors — Up to ₹2 Crore

The Tourism Department of the Government of Madhya Pradesh operates a capital subsidy scheme built to pull private money into the state's heritage hospitality segment. It is aimed squarely at individual proprietors who are developing a heritage hotel and want a slice of their fixed capital outlay returned once the property is up and running.

Execution and project support rest with the Madhya Pradesh Tourism Board. The scheme carries a twin purpose: safeguarding and showcasing the state's cultural inheritance, and expanding hospitality capacity along with the jobs that come with it.

The entire journey happens online through government investment portals. A proprietor registers, obtains the permissions a hotel needs through a single-window route, finishes construction, opens for business and then lodges a subsidy claim. There is no closing date — claims are accepted throughout the year — but a claim must be filed within 12 months of the day commercial operations begin.

Payouts are meaningful: 15% of approved fixed capital investment, subject to a ₹2 crore ceiling, against a project that must show at least ₹3 crore of capital expenditure.

• 15% capital subsidy on approved fixed capital investment
• Payout capped at ₹2 crore; project must spend at least ₹3 crore
• Open only to proprietorship firms developing heritage hotels
• Claim must be filed within 1 year of starting commercial operations
• Implemented by the Madhya Pradesh Tourism Board
• Rolling applications through the state's Invest Portal

Eligibility is framed around three things — who owns the venture, what kind of project it is, and how much has been spent.

• Ownership: only a proprietorship firm qualifies to apply.
• Project type: the venture must be a heritage hotel, classified as a tourism project.
• Minimum spend: fixed capital expenditure of at least ₹3,00,00,000 (₹3 crore) is compulsory.
• Timing of setup: the hotel has to be established and made operational while the policy remains in force.
• Filing window: the subsidy application must reach the department within one year of the date commercial operations commence.
• Age of investment: capital claimed under the scheme must have been invested no earlier than three years before operations began. Where the project was executed in one go, that window stretches to five years.
• No double dipping: a project drawing this subsidy cannot at the same time claim Investment Promotion Assistance.

MP Heritage Hotel Capital Subsidy for Proprietors — Up to ₹2 Crore is open to startups at any stage. It is open to startups registered anywhere in India.

MP Heritage Hotel Capital Subsidy for Proprietors — Up to ₹2 Crore 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 support comes as a capital subsidy equal to 15% of approved fixed capital investment, which trims the heavy upfront cost of building a heritage property.

• The payout is capped at ₹2,00,00,000 (₹2 crore).
• Since a project must spend at least ₹3 crore, the subsidy band in practice runs from roughly ₹45 lakh to ₹2 crore.
• The hotel must stay in continuous operation for a minimum of three years after the subsidy is received.
• Early closure triggers partial recovery of the amount paid: 80% is refundable if the unit shuts within one year, 60% within two years and 50% within three years.
• Alongside the cash support, the scheme route includes grant facilitation and regulatory assistance through the state's single-window system.

MP Heritage Hotel Capital Subsidy for Proprietors — Up to ₹2 Crore 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.

Once a claim is submitted, the Madhya Pradesh Tourism Department and the Tourism Board take it through a detailed appraisal. The application is examined against each eligibility condition, the fixed capital investment being claimed is validated, and the operational status of the hotel is confirmed.

If the documents and project details are found to comply with the scheme guidelines, the subsidy claim is taken forward for disbursal. Shortfalls in paperwork or in investment proof hold things up at this stage.

Before you apply to MP Heritage Hotel Capital Subsidy for Proprietors — Up to ₹2 Crore, 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 Heritage Hotel Capital Subsidy for Proprietors — Up to ₹2 Crore is best suited for startups in India seeking non-dilutive funding of ₹45L – ₹2Cr. If that describes your startup, review the eligibility criteria above before applying.