MP Tourism Subsidy for Distant & New Ulterior Areas — Extra 5%
A Madhya Pradesh Tourism Department top-up subsidy that adds 5% to the standard capital investment subsidy, with no maximum ceiling and halved investment and room-count norms, for tourism projects in notified distant and new ulterior areas.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Tourism Department, Government of Madhya Pradesh (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
Madhya Pradesh's tourism investment is heavily clustered in a handful of well-connected districts, leaving large stretches of the state off the travel circuit. This scheme, run by the state's Tourism Department, is the targeted remedy: it sweetens the deal for anyone willing to build tourism infrastructure in the far-flung corners the government has officially flagged as priority zones.
In practical terms, the incentive is a top-up of 5% on the Capital Investment Subsidy that already applies under Madhya Pradesh's main Tourism Policy. A project sitting in a notified area therefore draws the standard rate for its category plus these additional five percentage points.
Two design choices stand out. First, no ceiling applies to the capital subsidy claimable under this scheme, so larger projects are not squeezed by a cap on support. Second, the entry thresholds are halved: the capital investment requirement works out to just 50% of what the normal policy demands for that project type, and the room-count requirement is similarly cut to 50% of the standard figure. Smaller and niche properties consequently stand a realistic chance of qualifying.
The Madhya Pradesh Tourism Board handles implementation, and the entire process runs through Madhya Pradesh's Invest Portal, so registration, applications and tracking all happen online. There is no closing date either — applications stay open through the operative period of the Tourism Policy.
Highlights
- Additional 5% Capital Investment Subsidy, stacked on top of standard Tourism Policy rates
- No maximum ceiling on the subsidy amount that can be claimed
- Minimum investment halved to 50% of the standard policy limit for the project category
- Room capacity requirement halved to 50% of the standard ceiling
- Only for projects located in areas notified as distant or new ulterior
- Rolling applications; claim filed within one year of starting operations
Who can apply
The scheme is open to anyone setting up a tourism project of a type defined in the Madhya Pradesh Tourism Policy — hotels, resorts and comparable tourism infrastructure included.
- Location: the project must come up in an area the state Tourism Department has classified as "distant" or "new ulterior". Projects anywhere else in the state do not qualify for this top-up.
- Minimum investment: the project must involve capital investment of at least 50% of the prescribed limit for its project category under the standard Tourism Policy.
- Room capacity: the project must offer at least 50% of the room capacity ceiling laid down for that category in the standard policy.
- Timing: the project has to be established and become operational within the operative tenure of the Tourism Policy.
- Entity types: the state's application portal accepts Public Limited Companies, Private Limited Companies, LLPs, proprietorship firms, partnership firms, cooperatives, trusts, FPOs and individual applicants.
MP Tourism Subsidy for Distant & New Ulterior Areas — Extra 5% is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
MP Tourism Subsidy for Distant & New Ulterior Areas — Extra 5% 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.
What the funding covers
An extra 5% Capital Investment Subsidy. This amount comes on top of the subsidy percentage a project already earns under the state's general Tourism Policy — the two are cumulative, not alternatives.
No upper cap. The scheme fixes no maximum on the capital subsidy that can be claimed, so large projects can draw support proportionate to their scale instead of being restricted by a ceiling.
Halved entry thresholds. Minimum capital investment falls to half the figure the Tourism Policy normally prescribes, and the required room capacity falls to half the standard ceiling for the applicable project category. That opens the scheme up to smaller and niche tourism ventures.
Cash support claimed after operations begin. The incentive is financial in nature and is claimed once the project is built and commercially running, following verification. Regulatory help comes bundled in as well — mandatory permissions are routed through the state's online single-window system.
About the provider
MP Tourism Subsidy for Distant & New Ulterior Areas — Extra 5% 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.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Review and verification rest with the Tourism Department and the Madhya Pradesh Tourism Board; the guidelines describe no competitive pitch round, but they do set out a clear sequence of steps.
- Register on the Invest Portal as a "Vendor / Investor", entering the type of organisation, the firm or company name and the authorised person's name, along with a working email ID and mobile number.
- Complete the profile. A user ID and password are sent to the registered mobile number, and the authorised person logs in to finish the profile before applying.
- Secure permissions. Apply for and obtain all mandatory project permissions through the state's online single-window system within the prescribed time frames.
- Build and commence operations. Finish construction, meet the reduced minimum capital expenditure (half the standard limit), and start commercial operations.
- File the subsidy claim online within one year of the date commercial operations begin, uploading every supporting document in the required format — JPG for photographs and PDF for legal papers.
- Verification. The Tourism Department or Board examines the application and documents against the location, investment and capacity conditions, and processes the claim once satisfied.
Documents you’ll need
Before you apply to MP Tourism Subsidy for Distant & New Ulterior Areas — Extra 5%, 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.
Frequently asked questions
How much money does this scheme actually give?
It grants an additional 5% Capital Investment Subsidy over and above the standard subsidy percentage the Madhya Pradesh Tourism Policy already allows for your project category. Since the final rupee figure depends on the standard rate for your project type and your capital outlay, the scheme describes the amount as variable rather than fixed — and nothing caps how much can be claimed under this particular top-up.
Is there an upper limit on the subsidy?
No. The absence of a maximum ceiling is one of the defining features of this scheme. Eligible projects, including large ones, are not restricted by a stated cap on the capital subsidy they can claim.
What kind of projects and locations qualify?
Your project must be a tourism project of a type recognised in the Madhya Pradesh Tourism Policy — a hotel, a resort or similar tourism infrastructure. On top of that, it has to be established in a location the Government of Madhya Pradesh's Tourism Department has classified as a "distant" or "new ulterior" area. A tourism project built in any other part of the state will not be eligible for this additional subsidy.
How exactly are the investment and room-count conditions relaxed?
The minimum capital investment you must make is scaled down to 50% of the limit prescribed in the standard Tourism Policy for your project category. Likewise, the room capacity you must offer is reduced to 50% of the ceiling the standard policy sets for that category. These relaxations exist precisely to make remote-area projects viable for smaller and niche investors.
Is there a deadline to apply?
The scheme runs on a rolling, always-open basis with no fixed application window, and it remains available while the Tourism Policy is in force. There is, however, a deadline attached to the claim itself: your capital subsidy application must be submitted online within one year from the date your project commences commercial operations, so the clock effectively starts when you begin operating.
How do I apply for this subsidy?
Start by registering on the Madhya Pradesh Government's Invest Portal as a "Vendor / Investor". You will need your type of organisation, firm or company name and the authorised person's name, plus a valid email ID and mobile number. A user ID and password arrive on the registered mobile number, after which you log in, complete your profile and then apply. Before the claim stage you must also obtain your project permissions through the online single-window system, complete construction and begin commercial operations. The capital subsidy application is then filed online within one year of operations starting.
What documents or formats are required?
The scheme does not publish a fixed document checklist, but it does specify formats: photographs must be uploaded as JPG files and legal documents as PDFs. Practically, the claim rests on evidence of the permissions granted through the single-window system, proof that the reduced capital expenditure threshold has been met, and proof that commercial operations have commenced — since the application is filed only after the project is running.
Does the scheme take equity in my company?
No. This is a capital investment subsidy — cash support delivered as a grant-style incentive — and not an equity investment. The Tourism Department does not acquire a stake in your project and there is no dilution of ownership for founders or promoters.
Do I need DPIIT recognition or MSME registration to apply?
Neither DPIIT recognition nor MSME registration is listed among the scheme's eligibility conditions. What the authorities examine is whether the project sits in a notified distant or ulterior area, whether the reduced investment and room-capacity thresholds are met, and whether the project is established and operational within the tenure of the Tourism Policy. The portal does ask you to identify your organisation type, which can be a company, LLP, proprietorship, partnership, cooperative, trust, FPO or an individual.
Who runs the scheme and where are the details published?
The scheme was initiated by the Tourism Department, Government of Madhya Pradesh, and the Madhya Pradesh Tourism Board implements it. Applications and registration are handled through the state's unified investment portal, while the full policy conditions and notifications are published by the department on its official website.
Who is eligible to apply for MP Tourism Subsidy for Distant & New Ulterior Areas — Extra 5%?
MP Tourism Subsidy for Distant & New Ulterior Areas — Extra 5% is open to startups at any stage. It is open to startups registered anywhere in India.
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