MP Tourism Capital Subsidy for Existing Hotel & Resort Upgradation — Frequently Asked Questions

The subsidy amount is not a fixed figure. It is a capital subsidy calculated according to the tourism policy for the specific category of upgradation you are undertaking, so the final payout depends on your project and its category. What the scheme does fix are the investment floors you must meet to qualify: ₹10 crore for Category A and ₹25 crore for Category B.

Category A is for existing Standard Hotels or Mini Resorts that are being upgraded to Deluxe standard, where a Deluxe Hotel needs at least 50 rooms and a Deluxe Resort at least 20 rooms. Category B is for existing Deluxe Hotels or Resorts moving up to a 4-star or higher rating, where a hotel needs at least 75 rooms and a resort at least 25 rooms.

You must already operate a hotel or resort in Madhya Pradesh. Standard Hotels and Mini Resorts can apply under Category A, while existing Deluxe Hotels and Resorts can apply under Category B. Your upgraded property also has to meet the room-count requirement for the category you are targeting.

A minimum capital investment of ₹10 crore is required for a Category A upgradation, and ₹25 crore for a Category B upgradation. Only capital investment made after the policy came into force counts towards your claim.

Yes. Tourism projects established in distant and ulterior areas of the state receive an additional 5% Capital Investment Subsidy on top of the standard subsidy for their category.

The application has to be filed online within one year from the date your upgraded unit commences commercial operations. Fit the construction and the permission process first, then file the subsidy claim inside that one-year window with all the required documents.

Go to the Madhya Pradesh Government's Invest Portal and register as a "Vendor / Investor" with your organisation type, firm name and authorised person's details, along with a valid email ID and mobile number. The portal issues a User ID and password, which you use to log in and complete your profile. You then secure your mandatory permissions through the same online single-window system, complete the construction to the required investment level, start commercial operations, and submit the subsidy application online within one year of commencing operations.

No. If you claim the capital subsidy under this policy, you cannot also claim Investment Promotion Assistance.

The unit is expected to run for at least three years. If it closes within one, two or three years, 80%, 60% or 50% of the subsidy amount respectively has to be refunded.

No. This is a capital subsidy paid against eligible capital investment, so it does not dilute your ownership of the property the way an equity investor would.

MP Tourism Capital Subsidy for Existing Hotel & Resort Upgradation runs on a rolling basis with no fixed deadline — applications are accepted on an ongoing basis. Check the official site to confirm the window is currently open.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for MP Tourism Capital Subsidy for Existing Hotel & Resort Upgradation, though having it can strengthen your application and unlock other benefits.

MP Tourism Capital Subsidy for Existing Hotel & Resort Upgradation is offered by Madhya Pradesh Tourism Board, a government body. It is provided as non-dilutive funding.