MP Tourism Subsidy for Distant & New Ulterior Areas — Extra 5% — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.