Uttarakhand Tourism Policy 2023 — Capital Grants & Subsidies
A rolling grant and incentive scheme from Uttarakhand's Department of Tourism that offers capital subsidies, interest support and statutory reimbursements to investors building tourism projects in the state.
- Funding amount
- Varies by program
- Funding type
- Grant
- Provider
- Department of Tourism, Government of Uttarakhand (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Uttarakhand Tourism Policy 2023 is the state's financial toolkit for pulling private and institutional capital into tourism. It is run by Uttarakhand's Department of Tourism and works less like one single fund and more like a menu of incentives — capital subsidies, interest support, turnover-linked rewards and statutory reimbursements — each attached to a different kind of project.
Two project families sit at the centre of the policy. Housing and residential tourism developments attract capital subsidies of up to 25%, 35% or 50% depending on the category they fall into, while tourism products and services can claim capital grants worth as much as 100% of the capital asset. Units that are already running and are not drawing a capital grant can instead take a turnover-linked incentive.
On top of the headline subsidy, the policy refunds electricity duty for new eligible units across the policy period and reimburses stamp duty in instalments, and it pays a per-passenger subsidy for helicopter travel from identified helipads.
Everything runs through the state's Single Window System, which handles both the clearances a project needs and the grant application itself. The reason this matters to an investor is straightforward: it lowers the cost of building tourism infrastructure in Uttarakhand and rewards units that bring in foreign visitors, run premium residential stays or host MICE, art, social and cultural events.
Support is not only financial. The programme also extends mentorship, market access, training and skilling workshops, regulatory hand-holding and help with grant facilitation.
Highlights
- Rolling applications — no fixed last date to start the process
- Capital grants of up to 100% of the capital asset for tourism products and services
- Housing project subsidies of up to 25%, 35% or 50% by category
- Minimum project investment between ₹1 crore and ₹5 crore
- 100% electricity duty reimbursement and stamp duty refund in five instalments
- Heli-transport subsidy of ₹500 per person per leg
Who can apply
Any legitimate entity or investor putting capital into Uttarakhand's tourism sector can apply, as long as the project meets the conditions set out in the policy and its operational guidelines.
- Minimum investment: the project must commit between ₹1 crore and ₹5 crore, with the exact threshold depending on the project category and its location.
- Land: the investor must either already own land in Uttarakhand or buy it, or take it on lease, to execute the project.
- Infrastructure: the minimum infrastructure prescribed in the policy guidelines must be provided.
- Compliance: all stated conditions and applicable regulations have to be met.
Both fresh projects and the expansion of existing ones are covered.
The application route depends on the size of the investment rather than on the sector: proposals involving up to ₹50 crore are treated as MSME proposals, while larger proposals follow the non-MSME route. DPIIT recognition is not listed among the eligibility conditions.
Uttarakhand Tourism Policy 2023 — Capital Grants & Subsidies 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
Uttarakhand Tourism Policy 2023 — Capital Grants & Subsidies 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
Support under the policy comes in several buckets.
Capital subsidy for housing projects
- Up to 25% for Category A, 35% for Category B and 50% for Category C projects.
- Disbursed either in 10 equal annual instalments or as 75% of net SGST paid, whichever is lower.
- Additional yearly incentives for residential projects: up to 1% for marketing and publicity, up to 0.5% for training and skilling, up to 1% as interest subsidy, up to 0.25% for waste treatment and up to 0.25% for bookings made through state-developed online travel agencies or platforms.
Capital grants for tourism products and services
- Up to 100% of the capital asset, paid in 5 equal annual instalments or as 75% of net SGST paid, whichever is lower.
- Additional yearly incentives: up to 2% for marketing and publicity, up to 2% for training and skilling, up to 2% as interest subsidy and up to 1% for bookings through state-developed online travel agencies or platforms.
Turnover-linked incentives
- For tourism projects already in operation that are not taking a capital grant: up to 1% of eligible turnover, covering Premium Residential Units, Foreign Tourist Stay and MICE, art, social and cultural events.
Other support
- A heli-transport subsidy of ₹500 per person per leg for helicopter travel from specified helipads to the nearest residence or helipad.
- 100% reimbursement of electricity duty for new eligible tourism units for the duration of the policy.
- Stamp duty reimbursement in five equal instalments for new eligible tourism units.
- Access to the Single Window System for clearances and approvals.
Alongside the money, the policy offers mentorship, market access, training and skilling workshops, regulatory support and grants facilitation.
About the provider
Uttarakhand Tourism Policy 2023 — Capital Grants & Subsidies is offered by Department of Tourism, Government of Uttarakhand, a government body. As a government-backed grant, 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
Getting funded is a two-part journey: first an In-Principle Approval for the project, then — only once the unit is built and commercially operational — a grant claim.
Stage 1: In-Principle Approval
- Apply through the Single Window System at https://investuttarakhand.uk.gov.in/ with details of the investor, the proposed project, the land involved and the scheme being sought. All supporting documents need to be ready before this step.
- For MSME proposals (investment up to ₹50 crore), the General Manager, Industries Department, forwards the proposal to the District Industries Centre. For non-MSME proposals (above ₹50 crore), it goes to the Nodal Officer at the Directorate of Industries, who sends it to the relevant state-level departments for online concurrence or dissent.
- The District Level Empowered Committee (DLEC) grants in-principle approval for MSME projects. Non-MSME projects are approved by the State Level Empowered Committee (SLEC), chaired by the Chief Secretary.
Stage 2: Clearances and construction
- With in-principle approval in hand, apply for pre-construction clearances such as land use change, fire safety, environmental clearance, electricity connection, drinking water supply and building plan approval, either via the Single Window Portal or directly with the departments concerned.
- Construct the approved project.
- After completion, secure post-construction clearances, approvals and registrations — among them the Environment Department and Development Authority clearances, Travel Trade Registration and the Occupancy Certificate from the Tourism Department.
Stage 3: Grant claim
- Commercial operations must have begun before any grant can be claimed.
- File the grant application through the Single Window Portal using the CAF ID already allotted, within 150 days from the end of the relevant financial year, with the specified supporting documents.
- The Tourism Department forwards the application to the District Level Tourism Committee (DLTC), which verifies certificates, carries out an on-site inspection and submits a joint inspection report online.
- The Integrated Tourism Committee (ITC) at Tourism Headquarters reviews the proposal along with the inspection report and recommends it to the SLEC for final financial approval.
- Once the SLEC clears it, the Uttarakhand Tourism Development Council (UTDC) transfers the grant amount online to the investor's bank account.
Documents you’ll need
Before you apply to Uttarakhand Tourism Policy 2023 — Capital Grants & Subsidies, 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 funding does the Uttarakhand Tourism Policy 2023 actually offer?
The amount varies by project type. Housing projects can receive capital subsidies of up to 25%, 35% or 50% depending on category, while tourism products and services can receive capital grants of up to 100% of the capital asset. Tourism units already in operation and not drawing a capital grant can claim up to 1% of eligible turnover. There is also a heli-transport subsidy of ₹500 per person per leg, full electricity duty reimbursement for the policy period and stamp duty reimbursement in five instalments.
Is there an application deadline?
The scheme runs on a rolling basis, so there is no single closing date for getting started — you can apply for In-Principle Approval whenever your project is ready. The one firm timing rule applies at the end: your grant claim must be submitted within 150 days from the end of the relevant financial year in which you began commercial operations.
Who is eligible to apply for these grants?
Any legitimate entity or investor with a capital investment plan in Uttarakhand's tourism sector can apply, provided the project meets the policy's conditions. In practice that means committing a minimum investment of between ₹1 crore and ₹5 crore (the exact figure depends on the project category and location), holding or acquiring land in Uttarakhand by purchase or lease, providing the minimum infrastructure prescribed in the guidelines, and complying with all specified regulations. New projects and expansions of existing ones both qualify.
Is there a minimum investment requirement?
Yes. To be considered, a new or expansion project must involve an investment of at least ₹1 crore, rising to ₹5 crore in some cases, depending on the project's category and where it is located.
Do I need DPIIT recognition or MSME registration?
DPIIT recognition is not one of the eligibility conditions listed for this policy. What the process does differentiate on is the size of your investment: proposals of up to ₹50 crore are handled as MSME proposals through the General Manager, Industries Department and the District Industries Centre, while proposals above ₹50 crore follow the non-MSME route via the Nodal Officer at the Directorate of Industries.
Does the government take equity or a stake in my project?
No. The support here comes as grants, subsidies and reimbursements, which are non-dilutive — the state does not take an ownership stake in your unit in return for the funding.
What extra incentives come along with the capital grant?
Quite a few, and they differ by project type. Residential projects can additionally claim up to 1% for marketing and publicity, up to 0.5% for training and skilling, up to 1% as interest subsidy, up to 0.25% for waste treatment and up to 0.25% for bookings through state-developed online travel agencies. Tourism products and services get up to 2% each for marketing and publicity, training and skilling, and interest subsidy, plus up to 1% for bookings through state-developed online travel platforms.
How and when is the grant money paid out?
Capital subsidies for housing are released in 10 equal annual instalments, and capital grants for tourism products and services in 5 equal annual instalments, in both cases counted from the date commercial operations begin — or as 75% of the net SGST paid, whichever is lower. Electricity duty is reimbursed fully for the policy period, stamp duty is refunded in five equal instalments, and the approved grant is transferred online to your bank account by the Uttarakhand Tourism Development Council once the State Level Empowered Committee gives final financial approval.
I already run a tourism unit in Uttarakhand. Can I still benefit?
Yes. Expansion of existing projects is covered by the policy, and operational tourism units that are not receiving a capital grant can apply for turnover-linked incentives of up to 1% of eligible turnover, which cover Premium Residential Units, Foreign Tourist Stay and MICE, art, social and cultural events.
How do I apply, and what happens after I submit?
Start by applying for In-Principle Approval through the Uttarakhand Single Window System at https://investuttarakhand.uk.gov.in/, giving details of yourself, the project, the land and the scheme you want. Once approval comes through, you obtain your pre-construction clearances, build the project, complete post-construction formalities and begin commercial operations. Only then do you file the grant claim on the Single Window Portal using your allotted CAF ID. That claim is verified and inspected on site by the District Level Tourism Committee, reviewed by the Integrated Tourism Committee, and finally approved by the State Level Empowered Committee before the Tourism Development Council releases the funds.
Who offers Uttarakhand Tourism Policy 2023 — Capital Grants & Subsidies?
Uttarakhand Tourism Policy 2023 — Capital Grants & Subsidies is offered by Department of Tourism, Government of Uttarakhand, a government body. It is provided as non-dilutive funding.
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