Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas

Description
The scheme "Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas" was launched by the Tourism Department, Government of Madhya Pradesh. The scheme aims to promote the development of tourism infrastructure in remote, accessible, and less developed regions of the state by offering enhanced financial incentives. The scheme provides an additional 5% Capital Investment Subsidy on top of standard policy rates, removes the maximum ceiling on subsidy amounts, and significantly relaxes the minimum investment and room count requirements for eligible projects. The applicant must establish a tourism project in a location specifically classified as a "distant" or "ulterior" area by the Tourism Department. The scheme is implemented by the Madhya Pradesh Tourism Board, and applications for this scheme are accepted through the state's investment portal.

Exclusions
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Benefits
• Additional Subsidy: An additional 5% Capital Investment Subsidy is provided on top of the standard subsidy percentage applicable to the project.
• No Cap on Subsidy: There is no upper limit (ceiling) on the maximum amount of capital subsidy that can be claimed under this scheme.
• Reduced Investment Requirement: The minimum capital investment limit required to be eligible is reduced to 50% of the prescribed limit mentioned in the Tourism Policy for the specific project type.
• Reduced Capacity Requirement: The ceiling for the number of rooms required is reduced to 50% of the standard requirement mentioned in the Tourism Policy.

Eligibility Criteria
1. - The applicant must establish a Tourism Project (e.g., Hotel, Resort, etc.) as defined in the Tourism Policy.
2. - The applicant must locate the project in an area classified as &quot;distant&quot; or &quot;new ulterior&quot; by the Government of Madhya Pradesh, Tourism Department.
3. - The applicant must meet a minimum investment limit of at least 50% of the prescribed limit mentioned in the standard Tourism Policy for that project category.
4. - The applicant must ensure the project meets at least 50% of the room capacity ceiling prescribed in the standard Tourism Policy.
5. - The applicant must ensure the project is established and operationalized during the operative tenure of the Tourism Policy.
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Application Process
Step 1: Step 1: The applicant must visit the Madhya Pradesh Government's Invest Portal, and initiate the registration process as a "Vendor / Investor".
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Step 1: The applicant must visit the Madhya Pradesh Government's Invest Portal, and initiate the registration process as a "Vendor / Investor".

Step 2: 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, Coo…
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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 enter the "Firm/Company Name" and the "Authorized Person Name" to establish the identity of the entity.

Step 3: Step 3: The applicant must enter a valid email ID and mobile number. The Application Number, User ID, password, and all other important communications will be sent to this registered email ID.
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Step 3: The applicant must enter a valid email ID and mobile number. The Application Number, User ID, password, and all other important communications will be sent to this registered email ID.

Step 4: Step 4: The applicant must complete the basic registration form submission. The system generates a User ID and password, which are shared directly with the applicant's registered mobile number.
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Step 4: The applicant must complete the basic registration form submission. The system generates a User ID and password, which are shared directly with the applicant's registered mobile number.

Step 5: 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 …
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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.

Step 6: Step 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 -
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Complete the construction, ensuring the minimum capital expenditure is met.
Commence commercial operations and gather proof of operation.

Step 7: 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).
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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 8: Step 3: The Tourism Department/Board verifies the application and documents and processes the subsidy claim.
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Step 3: The Tourism Department/Board verifies the application and documents and processes the subsidy claim.

Required Documents
• Memorandum and Articles of Association (if Public/Private Limited Company)
• Partnership Deed and Certificate of Registration (if Partnership)
• Certificate of Registration (if Proprietary Concern)
• Proof of Identity of Authorized Person (Aadhaar Card/Voter ID/Passport)
• Copy of PAN Card
• Cancelled Cheque of the Firm/Company
• Land Record Ownership Documents (Certified Khasra)
• Approved Khasra Map
• Registered Sale Deed or Lease Deed
• Building Permission from Appropriate Authority
• Map Approved by the Concerned Authority
• Project Report
• Certificate from Certified Engineer/Valuer Regarding Total Capital Cost
• Certificate from Chartered Accountant Regarding Total Project Cost
• Proof of Date of Commercial Operation (First Lodging Bill, Catering Bill, or Bill of Service)
• Coloured Photographs of Unit/Project from 03 Different Angles
• NOC from Pollution Control Board
• NOC from Forest Department (if Applicable)

Frequently Asked Questions
Q: Is there a strict deadline for submitting the subsidy application form after I have commenced the commercial operations of my unit?
A: You must submit your application within 1 year of the date of commencement of operation to be eligible for the claim.
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Q: Are there any mandatory employment requirements regarding local residents that I must satisfy to be eligible for the capital subsidy?
A: Yes, to be eligible for the capital subsidy, it is mandatory to provide employment to 70% of the total staff to residents of Madhya Pradesh.
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Q: Once I have received the subsidy, is there a mandatory minimum period during which I must keep my tourism unit operational?
A: You are required to run the unit for at least 3 years from the date of availing the subsidy and must submit a self-declaration regarding continuous operation annually.
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Q: What are the financial consequences if I am unable to sustain the operation of my unit and have to close it within three years?
A: If the unit closes within 1, 2, or 3 years of receiving the subsidy, you must refund 80%, 60%, or 50% of the subsidy amount, respectively.
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Q: If I decide to establish my tourism project in a distant or remote area, are there any additional financial incentives available?
A: Projects in such areas are eligible for an additional 5% Capital Investment Subsidy, and the minimum investment limit and room ceiling are reduced to 50%.
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Q: If my tourism unit qualifies for grants under more than one category, can I claim benefits from all eligible categories simultaneously?
A: No, if a unit is entitled to a grant/subsidy in more than one category, you must choose only one category in which you wish to get the benefit.
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Q: I already own an operational hotel and plan to expand it; am I eligible to receive a subsidy for this expansion under the guidelines?
A: Expansion projects are eligible for the subsidy provided there is a minimum 50% increase in the staying capacity of the existing establishment.
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Q: As an entrepreneur belonging to the Scheduled Caste or Scheduled Tribe category, am I entitled to any extra fiscal benefits?
A: Yes, entrepreneurs from SC/ST categories with 100% ownership of the tourism project are entitled to an additional 5% capital investment subsidy.
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Q: Is the subsidy amount calculated solely based on my investment, or is there an upper limit I should be aware of?
A: The subsidy is a percentage of your fixed capital investment, but it is strictly subject to a maximum ceiling amount specified for your project category.
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Q: If I have incurred capital expenditure prior to the actual commencement of the unit, will that cost be considered for the grant?
A: Expenditure incurred up to a maximum of 05 years before commencement is considered valid if the project was executed and operated in one go.
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Q: To prove the capital cost incurred on my project, whose certification is required to be submitted along with the subsidy application?
A: The total capital cost incurred must be certified by a certified Engineer/Valuer, and the total project cost must be certified by a Chartered Accountant.
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Q: What specific documentation must I provide to officially prove the date of commercial operation of my tourism unit?
A: You must provide copies of the first lodging bill, catering bill, bill of service provided, or any other legally acceptable proof to prove the date of commercial operation.
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Q: Does my project need to be established within a specific timeframe to qualify for the capital investment benefits mentioned?
A: Your project must be established and operationalized during the operative tenure of the policy to be entitled to the capital investment subsidy.
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Q: How should I submit my application for land allocation or permissions to ensure it is processed correctly by the department?
A: All applications for land allocation, permissions, and subsidies should be submitted online through the State Government&#39;s Invest Portal or Single Window System.
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