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

You get a subsidy equal to 15% of your fixed capital investment, capped at ₹50,00,000. So on a qualifying project, the state covers a slice of the construction cost and you fund the rest.

Your project must involve capital spending of at least ₹2,00,00,000, as approved by the department. Anything below that threshold does not qualify for the subsidy.

The Invest Portal registration covers Public Limited Companies, Private Limited Companies, LLPs, proprietorship firms, partnership firms, cooperatives, trusts, FPOs and individuals. What matters is that the applicant is establishing a new hotel or mini resort of the standard category in Madhya Pradesh.

A new standard hotel needs at least 25 air-conditioned lettable rooms. A new mini resort can qualify with at least 10 air-conditioned lettable rooms.

There is no general closing date — applications run on a rolling basis. The real deadline is per project: you must file the subsidy application within one year from the date your hotel or mini resort begins commercial operations.

Neither. It is a capital subsidy, so the money is not repaid like a loan and the department does not take a stake in your business. The only money that comes back is the refund triggered if the unit shuts down early.

You have to return part of the subsidy. Closure within one year means 80% is refundable, within two years 60%, and within three years 50%. Effectively, your unit needs to keep operating for at least three years from the date it avails the subsidy.

New standard hotels must provide employment to 70% residents of Madhya Pradesh. This condition is verified by the department when your subsidy claim is assessed.

Start by registering on the Madhya Pradesh Government's Invest Portal at sws.invest.mp.gov.in as a Vendor / Investor, entering your organisation type, firm name and authorised person's details. Registration is free and you will receive a user ID and password by email and mobile. Complete your profile, secure the required permissions through the online single-window system, finish construction, begin commercial operations, and then submit the capital subsidy application online within a year of starting operations, uploading proof of capital expenditure, proof of commencement and the other compliance certificates in the specified file formats.

The Tourism Department and the Madhya Pradesh Tourism Board review the application. They verify the capital expenditure incurred, confirm that commercial operations have commenced, check the 70% local employment requirement and confirm that the property meets the air-conditioned room standards. Once everything checks out, the subsidy is processed and disbursed.

Only up to a point. Investment made more than three years before the date your operations commence is excluded from the capital subsidy calculation, so older expenditure cannot be used to inflate the claim.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Capital Investment Subsidy: 15% Up to ₹50L for New MP Hotels & Resorts, though having it can strengthen your application and unlock other benefits.

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