Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel

Description
The scheme "Capital Investment Subsidy For Expansion Of Established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel" was launched by the Madhya Pradesh Tourism Department, Government of Madhya Pradesh. The scheme aims to encourage the expansion of existing tourism accommodation units by incentivizing private investment in the state. The scheme provides a capital investment subsidy of 15% against the fixed capital investment, subject to a maximum ceiling of ₹5,00,00,000/-. The applicant must ensure an expansion of at least 50% in the staying capacity of the established unit to be eligible for the subsidy. The scheme is implemented by the Madhya Pradesh Tourism Board. The applications for this scheme are accepted online through the Madhya Pradesh Government's Invest Portal.

Exclusions
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Benefits
• The beneficiary is entitled to a Capital Investment Subsidy of 15% against the Fixed Capital Investment.
• The maximum ceiling for the subsidy is ₹5,00,00,000/-.
• The subsidy is granted for the expansion of established Star, Deluxe, Standard Hotels, Resorts, or Heritage Hotels.
• The unit must maintain continuous operation and submit a self-declaration on or before the 15th of April every year regarding the continuous operation of the unit for at least three years from the date of availing the subsidy.
• If the unit closes within 1 year from the date of receipt of the subsidy, 80% of the subsidy amount has to be refunded.
• If the unit closes within 2 years from the date of receipt of the subsidy, 60% of the subsidy amount has to be refunded.
• If the unit closes within 3 years from the date of receipt of the subsidy, 50% of the subsidy amount has to be refunded.

Eligibility Criteria
1. - The applicant must have an established Star, Deluxe, or Standard Hotel, Resort, or Heritage Hotel.
2. - The applicant must incur a minimum capital expenditure of ₹1,00,00,000/- as approved by the department.
3. - The applicant must ensure an expansion in terms of a minimum of 50% increased staying capacity to be eligible for the subsidy.
4. - The applicant must obtain the necessary certification of heritage hotels/tourism projects from the Tourism Department to avail the exemptions/facilities.
5. - The applicant must submit the application for capital subsidy within 1 year from the date of commencement of operation.
6. - The applicant must ensure that the investment made prior to 3 years from the date of commencement of operation is not calculated for the capital subsidy.
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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
• Copy of Proof of Legal Authorized Person from Unit
• Copies of Memorandum and Articles of Association (if Public/Private Limited Company)
• Copy of Partnership Deed and Certificate of Registration (if Partnership)
• Name and Address of Proprietor/Certificate of Registration (if Proprietary Concern)
• Details and Registration from Competent Authority (if Legal Entity Other Than Above)
• Copy of Certificate of Establishment of Firm/Company
• Certified Khasra (Land Record Ownership Document)
• Site Map
• Copy of Registered Sale Deed or Lease Deed (Title Document)
• Copy of Project Report
• 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 Bill of Service/Facility Provided)
• Photographs 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

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 prior to 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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