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

The subsidy works out to 15% of your approved fixed capital investment, and it cannot exceed ₹2 crore. Because the project must involve at least ₹3 crore of capital expenditure, the smallest possible payout is around ₹45 lakh and the largest is ₹2 crore.

You must incur fixed capital expenditure of at least ₹3,00,00,000 (₹3 crore) on the heritage hotel project. Anything below that threshold will not meet the scheme's entry condition.

Only proprietorship firms can apply. The venture must be developed as a heritage hotel and treated as a tourism project in Madhya Pradesh, and it must be set up and operational during the policy's operative period.

No. The scheme runs on a rolling basis with no closing date. However, your subsidy application has to be submitted within one year from the date your hotel begins commercial operations, so the clock starts from your opening day.

No. This is a subsidy, so it is not dilutionary — the department does not acquire any share of your business. There is, however, a conditional recovery clause: if the unit stops operating within three years, part of the money must be returned, at 80% within a year, 60% within two years and 50% within three years.

Register on the Madhya Pradesh Government's Invest Portal at sws.invest.mp.gov.in as a 'Vendor / Investor'. You will enter basic details such as organisation type (Proprietorship Firm), firm name and authorised person name, along with a valid email ID and mobile number. Registration is free, and the portal issues your Application Number, User ID and password. After logging in and completing your profile, you obtain permissions via the online single-window system, finish construction, begin operations and then file the subsidy claim online within the one-year window.

Not alongside this one. A project that receives this capital subsidy is not permitted to claim Investment Promotion Assistance at the same time.

The capital you claim must have been invested no earlier than three years before your operations began. If the project was executed in one go, the permitted window extends to five years.

The claim is filed online with all required documents uploaded in the formats the portal specifies. In practice this covers your registration details, the permissions secured through the single-window system, evidence of your fixed capital investment, and proof that operations have started — for example the first lodging or catering bill.

The Tourism Department and Tourism Board verify the application and documents, validate the fixed capital investment you have claimed and confirm that the hotel is operational. Once everything is found to comply with the scheme guidelines, the claim is processed for disbursal.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for MP Heritage Hotel Capital Subsidy for Proprietors — Up to ₹2 Crore, though having it can strengthen your application and unlock other benefits.

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