Tourism Department, Government of Madhya Pradesh
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MP Capital Investment Subsidy for Resorts & Wellness Centres — Up to ₹2 Cr — Frequently Asked Questions

FAQ

Answers to the questions founders most often ask about MP Capital Investment Subsidy for Resorts & Wellness Centres — Up to ₹2 Cr — who qualifies, the funding amount, required documents and how the application works.

Frequently asked questions

How much subsidy does this scheme actually pay?

The subsidy is 15% of the fixed capital investment you make in the project, subject to a maximum of ₹2,00,00,000 (₹2 crore). Because the project must involve at least ₹5 crore of approved capital expenditure, the payout in practice falls somewhere between roughly ₹75 lakh and ₹2 crore, depending on how much you invest.

What is the minimum capital expenditure required?

You must incur capital expenditure of at least ₹5,00,00,000 (₹5 crore) on the project, as approved by the department. Projects below that threshold are not eligible for the subsidy.

What kind of project qualifies for the subsidy?

A newly established Resort and Wellness Centre in Madhya Pradesh, equipped with Ayurvedic, Yoga and Naturopathic treatment facilities. The unit has to be set up according to the definition, criterion and standards laid down by the Government of India or the state government, and it needs the certification the Tourism Department requires for a wellness or resort project.

Are there any room or facility standards I need to meet?

Yes. The scheme's standards reference a minimum of 10 air-conditioned rooms for a resort and 25 for a hotel, along with the wellness treatment facilities the project is built around. The unit must also comply with the broader standards set by the Government of India or the Government of Madhya Pradesh.

Which entities can apply for this subsidy?

The scheme is open to private investors establishing a tourism project in Madhya Pradesh. Public Limited Companies, Private Limited Companies, LLPs, Proprietorship Firms and Partnership Firms are all eligible entity types.

Is there an application deadline?

The scheme runs on a rolling, always-open basis rather than a fixed annual window. The deadline that applies is your own: the subsidy application has to be submitted within one year from the date your unit begins commercial operations.

Does the government take equity, and do I have to repay the money?

No equity is involved — this is a capital subsidy, so the state does not take a stake in your business and nothing is repaid by default. The one condition is operational continuity: the unit must remain operational for at least three years from the date the subsidy is availed.

What happens if I close the unit before three years?

The subsidy becomes recoverable with a penalty based on when the closure happened. If the unit shuts within 1 year, 80% of the subsidy is refunded; within 2 years, 60%; and within 3 years, 50%. The penalty is calculated according to the closure timeline.

Can I claim another capital subsidy for the same project?

No. An applicant who has already claimed Investment Promotion Assistance or a capital subsidy under any other category for the same project cannot claim this subsidy for it.

How do I apply, and what will I need to submit?

Applications are made online through the Madhya Pradesh government's single-window Invest portal at https://sws.invest.mp.gov.in/. You register as a Vendor/Investor, receive a User ID and password on your email and mobile, complete your profile, finish the project and start operations, then file the subsidy claim within a year. The documents you upload should cover your capital expenditure, proof of operational commencement and the certification required by the Tourism Department, in the prescribed formats (photographs, for example, as JPG). The Tourism Department and the Madhya Pradesh Tourism Board then verify everything before the claim is processed.

Is DPIIT recognition required for MP Capital Investment Subsidy for Resorts & Wellness Centres — Up to ₹2 Cr?

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for MP Capital Investment Subsidy for Resorts & Wellness Centres — Up to ₹2 Cr, though having it can strengthen your application and unlock other benefits.

Who is eligible to apply for MP Capital Investment Subsidy for Resorts & Wellness Centres — Up to ₹2 Cr?

MP Capital Investment Subsidy for Resorts & Wellness Centres — Up to ₹2 Cr is open to startups at any stage. It is open to startups registered anywhere in India.

Who offers MP Capital Investment Subsidy for Resorts & Wellness Centres — Up to ₹2 Cr?

MP Capital Investment Subsidy for Resorts & Wellness Centres — Up to ₹2 Cr is offered by Tourism Department, Government of Madhya Pradesh, a government body. It is provided as non-dilutive funding.

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