Uttarakhand Tourism Policy 2023 — Capital Grants & Subsidies — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.