Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation
in Madhya Pradesh
Last updated:
Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation in Madhya Pradesh
Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation is a government scheme available to eligible residents of Madhya Pradesh.
Apply for Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation in Madhya Pradesh
Scheme Overview
The scheme aims to incentivize existing hotels and resorts in Madhya Pradesh to upgrade their facilities to Deluxe, 4-Star, or higher categories. It provides capital subsidy benefits to private investors and hotel owners who undertake significant renovation and modernization projects.
Eligibility Criteria
- The applicant must be an existing Standard Hotel or Mini Resort to apply for Category A upgradation.
- The applicant must ensure the upgraded facility meets the criteria for Deluxe Hotels (minimum 50 rooms) or Resorts (minimum 20 rooms) under Category A.
- The applicant must make a minimum investment of ₹10,00,00,000/- to be eligible for the subsidy under Category A.
- The applicant must be an existing Deluxe Hotel or Resort to apply for Category B upgradation.
- The applicant must ensure the upgraded facility meets the criteria for 4-star or higher category Hotels (minimum 75 rooms) or Resorts (minimum 25 rooms) under Category B.
- The applicant must make a minimum investment of ₹25,00,00,000/- to be eligible for the subsidy under Category B.
- The applicant must claim subsidy only on capital investment made after the enforcement of this Policy.
- The applicant must submit the application in the prescribed format within 1 year from the date of commencement of operation.
- The applicant must not claim Investment Promotion Assistance if they are claiming capital subsidy under this policy.
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Benefits
Existing standard hotels (minimum 50 rooms) and mini resorts (minimum 20 rooms) upgrading to Deluxe Hotels/Resorts are eligible for capital subsidy as per the tourism policy under such category.
Existing Deluxe hotels and resorts upgrading to 4-star or higher category Hotels (minimum 75 rooms) or Resorts (minimum 25 rooms) are eligible for capital subsidy as per the tourism policy under such category.
An additional 5% Capital Investment Subsidy shall be given to tourism projects established in distant and ulterior areas.
It will be mandatory for all units, who have availed subsidy to run the units at least for three years from the date of availing the subsidy.
Such units will submit a self-declaration on or before 15th of April every year regarding continuous operation of the unit.
On non-compliance regarding the closure of the unit, the investor shall have to return the subsidy amount as follows:
Closure of unit within 1 year from the date of receipt of subsidy: 80% amount of subsidy has to be refunded.
Closure of unit within 2 years from the date of receipt of subsidy: 60% amount of subsidy to be refunded.
Closure of unit within 3 years from the date of receipt of subsidy: 50% amount of subsidy to be refunded.
Required Documents
| # | Document |
|---|---|
| 1 | Brief Note on the Business Antecedents of the Promoters (Not More Than 60 Words) |
| 2 | Copy of Proof of Legal Authorized Person from Unit |
| 3 | Memorandum and Articles of Association (if Public/Private Limited Company) |
| 4 | Partnership Deed and Certificate of Registration (if Partnership) |
| 5 | Name and Address of Proprietor/Certificate of Registration (if Proprietary Concern) |
| 6 | Registration Details from Competent Authority (if Legal Entity Other Than Above) |
| 7 | Copy of Certificate of Establishment of Firm/Company |
| 8 | Certified Khasra (Land Record Ownership Document) |
| 9 | Site Map (Land Record Ownership Document) |
| 10 | Registered Sale Deed or Lease Deed (Title Document) |
| 11 | Copy of Project Report |
| 12 | Certificate from HRACC (if Applicable) |
| 13 | Copy of Certificate from Town and Country Planning (TNCP) |
| 14 | Copy of Map Sanctioned by the Local Authority (Municipal Corporation, Municipality Etc.) |
| 15 | Copy of the Building Permission Granted by the Appropriate Authority |
| 16 | Copy of Approved Floor Plan |
| 17 | Completion Certificate from Competent Authority |
| 18 | Total Project Cost Certificate Certified by Certified Engineer/Valuer |
| 19 | Total Capital Cost Certificate Certified by CA |
| 20 | Debt Details from Concerned Financial Institution |
| 21 | Proof of Date of Commercial Operation (Copy of First Lodging Bill) |
| 22 | Proof of Date of Commercial Operation (Copy of First Catering Bill) |
| 23 | Proof of Date of Commercial Operation (Copy of First Bill of Service/Facility Provided) |
| 24 | Photographs of Unit/Project from 3 Different Angles (JPG Format Not More Than 500 KB Size) |
| 25 | Cancelled Cheque of the Firm/Company |
| 26 | Copy of PAN Card |
| 27 | Copy of Photo ID Proof (Aadhaar Card/ Voter ID/ Passport Etc.) |
| 28 | Copy of Vender Form |
How to Apply in Madhya Pradesh
Step 1: The applicant must visit the Madhya Pradesh Government's Invest Portal, and initiate the registration process as a "Vendor / Investor".
Offline Step 1: The applicant must visit the Madhya Pradesh Government's Invest Portal, and initiate the registration process as a "Vendor / Investor".
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…
Offline 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: 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.
Offline 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: 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.
Offline 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: 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 …
Offline 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 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 -
Offline Complete the construction, ensuring the minimum capital expenditure is met. Commence commercial operations and gather proof of operation.
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).
Offline 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.
Offline Step 3: The Tourism Department/Board verifies the application and documents and processes the subsidy claim.
Common questions in Madhya Pradesh
Who can apply for Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation in Madhya Pradesh?
Eligible residents of Madhya Pradesh who meet the scheme’s overall criteria can apply for Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation. Refer to the eligibility section above for the complete checklist.
What documents are required for Capital Subsidy to Existing Hotels for Renovation/Modernization & Upgradation in Madhya Pradesh?
Applicants in Madhya Pradesh typically need identity proof (Aadhaar), state residency proof, bank account details, and any scheme-specific documents listed in the documents section.
Frequently Asked Questions
You must submit your application within 1 year of the date of commencement of operation to be eligible for the claim. <br>