Capital Investment Subsidy: 15% Up to ₹50L for New MP Hotels & Resorts

This is a capital subsidy run by the Tourism Department of the Government of Madhya Pradesh for entrepreneurs putting up brand-new accommodation in the state. The idea is simple: Madhya Pradesh wants more quality rooms to serve the tourists drawn to its heritage sites, wildlife parks and natural landscapes, and it is willing to share part of the construction cost with investors who build them. The scheme is built around new establishments, so eligibility flows from creating fresh capacity rather than from renovating what already exists.

The money comes as a 15% subsidy on your fixed capital investment, with a ceiling of ₹50 lakh. To qualify for any of it, your project must involve capital spending of at least ₹2 crore, as approved by the department. Because the support is tied to fixed capital, it rewards tangible, long-term infrastructure rather than running costs.

The department is equally clear about what it expects in return. A new standard hotel must offer at least 25 air-conditioned rooms available for letting, while a mini resort can qualify with 10. New standard hotels also have to draw 70% of their workforce from residents of Madhya Pradesh, which is where the employment-generation argument for the scheme comes in. And the subsidy is not unconditional: a unit that shuts down early has to return part of the money.

The Madhya Pradesh Tourism Board administers the scheme, handling applications, verification and disbursement in line with the policy guidelines. Applications move through the state's single-window Invest Portal alongside the permissions a hospitality project needs.

• 15% subsidy on fixed capital investment, capped at ₹50 lakh
• Minimum capital expenditure of ₹2 crore required
• For new standard hotels (25+ AC lettable rooms) and mini resorts (10+ AC lettable rooms) in Madhya Pradesh
• No application deadline — claims filed within one year of starting operations
• New standard hotels must employ 70% Madhya Pradesh residents
• Subsidy partly refundable if the unit closes within three years

The subsidy is meant for promoters who are setting up a new hotel or mini resort in Madhya Pradesh, not for existing units being expanded or refurbished.

• Capital spending: Your project must involve a capital outlay of at least ₹2 crore, as approved by the department. Spending incurred more than three years before commercial operations begin is left out of the subsidy calculation.
• Hotel projects: A new standard hotel needs at least 25 air-conditioned rooms available for letting.
• Mini resort projects: A new mini resort needs at least 10 air-conditioned rooms available for letting.
• Employment: New standard hotels must employ 70% residents of Madhya Pradesh.
• Application timing: The subsidy application has to be filed within one year of starting commercial operations.
• Entity types: The Invest Portal registration accommodates Public Limited Companies, Private Limited Companies, LLPs, proprietorship firms, partnership firms, cooperatives, trusts, FPOs and individuals.

There is no bar on sector beyond hospitality, since the scheme itself is limited to standard-category hotels and mini resorts.

Capital Investment Subsidy: 15% Up to ₹50L for New MP Hotels & Resorts is open to startups at any stage. It is open to startups registered anywhere in India.

Capital Investment Subsidy: 15% Up to ₹50L for New MP Hotels & Resorts 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 is a cash subsidy equal to 15% of your fixed capital investment, subject to a maximum of ₹50,00,000. It is a non-repayable benefit, which means it directly reduces the size of the cheque you have to write for construction.

The percentage applies to approved fixed capital investment, and eligibility begins only once capital spending crosses the ₹2 crore mark. Investment made more than three years before commercial operations start does not enter the calculation.

There is one important string attached. If the unit stops operating after the subsidy has been received, a share of the money goes back to the department:

• Closure within one year of receiving the subsidy — 80% refundable
• Closure within two years — 60% refundable
• Closure within three years — 50% refundable

In practical terms, the unit is expected to stay running for at least three years from the point it avails the subsidy. The condition exists to make sure the public money actually produces lasting tourism infrastructure and jobs.

Capital Investment Subsidy: 15% Up to ₹50L for New MP Hotels & Resorts 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 you submit the subsidy application online with the supporting documents, the Tourism Department and the Madhya Pradesh Tourism Board examine the claim in detail.

• Capital expenditure verification — the department checks the fixed capital investment actually incurred against the approved figure.
• Commencement check — proof that commercial operations have genuinely begun, such as the first lodging or catering bill, is verified.
• Employment compliance — the 70% local-resident employment requirement for new standard hotels is confirmed.
• Facility standards — the number of air-conditioned lettable rooms is checked against the minimum for a hotel (25) or a mini resort (10).

If all of this stands up, the subsidy claim is approved and processed, and the capital investment subsidy is disbursed to the eligible unit.

Before you apply to Capital Investment Subsidy: 15% Up to ₹50L for New MP Hotels & Resorts, 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.

Capital Investment Subsidy: 15% Up to ₹50L for New MP Hotels & Resorts is best suited for startups in India seeking non-dilutive funding of ₹50L. If that describes your startup, review the eligibility criteria above before applying.