MP Tourism Capital Subsidy for Existing Hotel & Resort Upgradation

The Madhya Pradesh Tourism Board runs a capital subsidy scheme for owners of existing hotels and resorts in the state who want to carry out substantial renovation and modernisation work. It is one of the Department of Tourism's tools for pulling private capital into Madhya Pradesh's hospitality sector and for bringing older properties up to Deluxe, 4-star or higher category standards.

The scheme works along two upgradation tracks. Category A covers an existing Standard Hotel or Mini Resort moving up to Deluxe standard. Category B covers an existing Deluxe Hotel or Resort moving up to a 4-star or higher rating. Each track carries its own room-count target and its own minimum capital investment floor — ₹10 crore for Category A and ₹25 crore for Category B.

The subsidy is paid as a capital subsidy, calculated as per the tourism policy for the relevant category of upgrade. Tourism projects located in distant and ulterior areas of the state can attract an additional 5% Capital Investment Subsidy on top. Because it is a subsidy rather than an investment, it does not dilute the promoter's ownership.

There is no fixed last date — applications are accepted on a rolling basis. The entire process runs online through the Madhya Pradesh Government's Invest Portal single-window system, which is also where applicants obtain the mandatory permissions a project needs.

• Capital subsidy for existing hotels and resorts in Madhya Pradesh
• Two tracks: Category A (to Deluxe) and Category B (to 4-star or higher)
• Minimum capital investment of ₹10 crore for Category A and ₹25 crore for Category B
• Additional 5% Capital Investment Subsidy for projects in distant and ulterior areas
• Applications accepted on a rolling basis through the MP Invest Portal single-window system

The scheme is open to hotel and resort units that already exist and are planning a serious upgradation.

• Category A applicants: existing Standard Hotels or Mini Resorts that will be upgraded to Deluxe standard.
• Category B applicants: existing Deluxe Hotels or Resorts that will be upgraded to 4-star or higher standard.
• Category A room targets: at least 50 rooms for a Deluxe Hotel, at least 20 rooms for a Deluxe Resort.
• Category B room targets: at least 75 rooms for a 4-star or higher Hotel, at least 25 rooms for a Resort.
• Minimum capital investment: ₹10 crore for Category A and ₹25 crore for Category B.
• The unit must be in Madhya Pradesh.
• Only capital investment made after the policy came into force can be counted towards the claim.
• The subsidy application must be filed within one year from the date commercial operations begin after the upgradation.
• An applicant claiming this capital subsidy cannot also claim Investment Promotion Assistance under the policy.

MP Tourism Capital Subsidy for Existing Hotel & Resort Upgradation is open to startups at any stage. It is open to startups registered anywhere in India.

MP Tourism Capital Subsidy for Existing Hotel & Resort Upgradation 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 scheme pays a capital subsidy to existing hotels and resorts that renovate and modernise their property. The precise subsidy is worked out according to the tourism policy for the relevant category of upgrade, so the payout varies from project to project rather than being a single flat figure.

• Category A: for units upgrading to Deluxe Hotels (minimum 50 rooms) or Deluxe Resorts (minimum 20 rooms).
• Category B: for existing Deluxe hotels and resorts upgrading to 4-star or higher category (minimum 75 rooms for hotels, minimum 25 rooms for resorts).
• Additional 5% Capital Investment Subsidy for tourism projects established in distant and ulterior areas of the state.
• The investment threshold that must be met is ₹10 crore for Category A and ₹25 crore for Category B.

Beyond the cash subsidy, the programme supports the compliance side of the project: applicants secure the mandatory permissions their unit needs through the state's online single-window system.

MP Tourism Capital Subsidy for Existing Hotel & Resort Upgradation is offered by Madhya Pradesh Tourism Board, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Applications, together with the documents filed alongside them, are verified by the Madhya Pradesh Tourism Department/Board. The scrutiny confirms that the unit satisfies the scheme's eligibility criteria, that the stated capital investment milestones have been met, and that commercial operations have commenced.

Where those conditions are fulfilled, the subsidy claim is processed in accordance with the tourism policy guidelines. The decision therefore turns on compliance with the scheme's conditions rather than on any competitive ranking.

Before you apply to MP Tourism Capital Subsidy for Existing Hotel & Resort Upgradation, 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.