Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort
State: Madhya Pradesh
Ministry: null
Department: Tourism Department
Category: Travel & Tourism, Business & Entrepreneurship
Beneficiary Type: Business Entity

The scheme provides a capital investment subsidy of 15% on fixed capital investment, subject to a maximum ceiling of ₹5,00,00,000/-. The applicant must invest a minimum of ₹10,00,00,000/- in capital expenditure and ensure the establishment of at least 50 lettable air-conditioned rooms.

Benefits:
- The beneficiary is entitled to a Capital Investment Subsidy of 15% against the Fixed Capital Investment.
- The maximum ceiling of the subsidy provided is ₹5,00,00,000/-.

##### ***Disbursal Conditions***

- _The unit must be operational for at least three years from the date of availing the subsidy._
- _The unit must submit a self-declaration regarding continuous operation on or before the 15th of April every year._
- _If the unit closes within 1 year of receiving the subsidy, 80% of the amount must be refunded._
- _If the unit closes within 2 years of receiving the subsidy, 60% of the amount must be refunded._
- _If the unit closes within 3 years of receiving the subsidy, 50% of the amount must be refunded._
- _Investment made prior to 3 years from the date of commencement of operation will be accepted for calculating the capital subsidy._

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Eligibility:
- The applicant must establish a new Hotel or Resort that falls under the &quot;Deluxe/Three Star or Higher&quot; category.
- The applicant must incur a minimum capital expenditure of ₹10,00,00,000/-, as approved by the department.
- The applicant must ensure the facility has a minimum of 50 lettable air-conditioned rooms available.
- The applicant must be a private investor, as the policy aims to promote private investment.
- The applicant must submit the application for the capital subsidy within 1 year from the date of commencement of operation.
- The applicant must not have claimed Investment Promotion Assistance for the same unit, as units claiming that assistance are not entitled to capital subsidy.

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Application Process:
[Offline]
Registration ProcessStep 1: The applicant must visit Madhya Pradesh Government's Invest Portal to initiate the registration process as a "Vendor / Investor." This portal serves as the single interface for availing different kinds of services offered by the corporation to investors and vendors.
Step 2: The applicant must fill in the basic information section by selecting the appropriate "Type of Organisation" from the available options, which include Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, and Individual. The applicant must also accurately enter the "Firm/Company Name" and the "Authorized Person Name" to establish the identity of the entity.
Step 3: The applicant must enter a valid email ID and mobile number, ensuring that both remain active throughout the entire process, as the Application Number, User ID, password, and all other important communications will be sent to this registered email ID. The applicant must verify that the email address is correct and ensure that emails sent to this mailbox are not redirected to the junk or spam folder.
Step 4: The applicant must complete the basic registration form submission, noting that there is no charge for this specific basic registration step. Upon successful submission of the information, the system generates a User ID and password, which are shared directly to the applicant's registered mobile number for login purposes.
Step 5: The authorized person logs in to the portal using the User ID and password received on the registered mobile number to process the company's activities. After the initial login, the applicant must update their profile to complete the full registration process before proceeding to apply for the scheme.
Application ProcessStep 1: The applicant must apply for and secure mandatory permissions through the online single-window system within the stipulated time frames. Then, the applicant must do the following - 
Complete the construction, ensuring the minimum capital expenditure of ₹3,00,00,000/- is met.
Commence commercial operations and gathers proof of operation, such as the first lodging or catering bill.
Step 2: The applicant must submit the capital subsidy application online within one year from the date of commencement of operation. Upload all required documents, ensuring all files meet the specified format requirements (e.g., JPG for photos).
Step 3: The Tourism Department/Board verifies the application and documents and processes the subsidy claim.

Documents Required:
Project Report.
Copies of Land Records (Ownership Documents Such as Certified Khasra and Site Map).
Copy of Registered Sale Deed or Lease Deed (Proof of Title).
Copy of Certificate of Establishment of Firm/Company.
Memorandum and Articles of Association (If Public/Private Limited Company).
Partnership Deed and Certificate of Registration (If Partnership Firm).
Certificate from HRACC (If Applicable).
Copy of Certificate from Town and Country Planning (TNCP).
Copy of Map Sanctioned by the Local Authority (Municipal Corporation, Municipality Etc.).
Copy of the Building Permission Granted by the Appropriate Authority.
Copy of Approved Floor Plan.
Completion Certificate from Competent Authority.
Total Project Cost Certificate Certified by Certified Engineer/Valuer.
Total Capital Cost Certificate Certified by CA.
Debt Details from Concerned Financial Institution.
Proof of Date of Commercial Operation (Photocopy of First Lodging Bill, Catering Bill, or Service Bill).
Photographs of the Unit/Project from 3 Different Angles (JPG Format Not More Than 500 KB Size).
Cancelled Cheque of the Firm/Company.
Copy of PAN Card.
Copy of Photo ID Proof (Aadhaar Card/ Voter ID/ Passport Etc.).
Copy of Vender Form.
Copy of Proof of Legal Authorized Person from Unit.