Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort

Description
The scheme "Capital Investment Subsidy to Establish a New Deluxe/Three Star or Higher Category New Hotel and Resort" was launched by the Department of Tourism, Government of Madhya Pradesh. 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. The scheme is implemented by the Madhya Pradesh Tourism Board and applications for this scheme are accepted online through the state's investment 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 of the subsidy provided is ₹5,00,00,000/-.
• 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.

Eligibility Criteria
1. - The applicant must establish a new Hotel or Resort that falls under the &quot;Deluxe/Three Star or Higher&quot; category.
2. - The applicant must incur a minimum capital expenditure of ₹10,00,00,000/-, as approved by the department.
3. - The applicant must ensure the facility has a minimum of 50 lettable air-conditioned rooms available.
4. - The applicant must be a private investor, as the policy aims to promote private investment.
5. - The applicant must submit the application for the capital subsidy within 1 year from the date of commencement of operation.
6. - 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
Step 1: Step 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 corporatio…
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Step 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: 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 also accurately 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, 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 register…
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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: 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…
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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: 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 of ₹3,00,00,000/- is met.
Commence commercial operations and gathers proof of operation, such as the first lodging or catering bill.

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
• 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.

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 from 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 ulterior 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 rooms 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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