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Travel & Tourism; Business & Entrepreneurship

Investment Promotion Assistance To Setup Large/Mega/Ultra-Mega Tourism Projects

The scheme aims to attract high-value private investment for developing Large, Mega, and Ultra-mega tourism projects in the state. It offers financial assistance of up to 30% of the capital investment to investors who meet minimum investment thresholds and generate employment for Madhya Pradesh.

Authority

State/ UT

Region

Madhya Pradesh

Status

Verified 2026

Updated

March 2026

What you get

Large Projects | The beneficiary will receive Investment Promotion Assistance of 30% on capital investment, subject to a maximum ceiling of ₹15,00,00,000/-. | Mega Projects | The beneficiary will receive Investment Promotion Assistance of 30% on capital investment, subject to a maximum ceiling of ₹30,00,00,000/-. | Ultra-mega Projects | The beneficiary will receive Investment Promotion Assistance of 30% on capital investment, subject to a maximum ceiling of ₹90,00,00,000/-. | Disbursement Schedule | The assistance is disbursed over four years in the following percentage of the total approved assistance amount: | - First Year: 10%. | - Second Year: 10%. | - Third Year: 5%. | - Fourth Year: 5%. | Heritage Projects | For Heritage Hotels, the mandatory requirements for investment and employment are reduced to 50% of the limits set for Large, Mega, and Ultra-mega categories, while they remain eligible for the benefits associated with those categories. | SC/ST Entrepreneurs | Applicants belonging to SC/ST categories with 100% ownership are entitled to an additional 5% capital investment subsidy. | Phase-wise Incentives | Projects are entitled to get phase-wise incentives provided the first phase is completed in 2 years, the second phase in 3 years, and the last phase in 5 years. | Conditions | - _The unit claiming Investment Promotion Assistance shall not be entitled to capital subsidy under any other category of the policy._ | - _The beneficiary must maintain the minimum employment of residents of M.P. as prescribed for their category._ | - _The beneficiary must complete the project phases within the approved implementation timeline to receive phase-wise grants._ | - _If the unit executes the entire project in one go, capital expenditure incurred up to a maximum of 05 years prior to the commencement of the unit is considered valid for the grant calculation._

Who can apply

The applicant must be a private entity, such as a public/private limited company, partnership firm, proprietary concern, or other legal entity.; The applicant must fulfill the criteria for one of the following categories to be eligible for assistance:; **Large Project:** The applicant must make a minimum capital expenditure of ₹10,00,00,000/- or more and generate employment for a minimum of 50 residents of M.P.- **Mega Project:** The applicant must make a minimum capital expenditure of ₹50,00,00,000/- or more and generate employment for a minimum of 100 residents of M.P.- **Ultra-mega Project:** The applicant must make a minimum capital expenditure of ₹100,00,00,000/- or more and generate employment for a minimum of 200 residents of M.P.- The applicant must ensure that the employment provided meets the condition of being for residents of Madhya Pradesh.; The applicant must not be claiming Capital Subsidy under any other clause of the Tourism Policy if applying for this Investment Promotion Assistance.; The applicant must execute the project within the stipulated timelines (2 years for phase 1, 3 years for phase 2, and 5 years for the final phase) to avail phase-wise incentives.; The applicant setting up Heritage Hotels must meet at least 50% of the minimum investment and employment conditions specified for the Large, Mega, or Ultra-mega categories.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Is the subsidy amount calculated solely based on my investment, or is there an upper limit I should be aware of?

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.

Is there a strict deadline for submitting the subsidy application form after I have commenced the commercial operations of my unit?

You must submit your application within 1 year of the date of commencement of operation to be eligible for the claim.

Are there any mandatory employment requirements regarding local residents that I must satisfy to be eligible for the capital subsidy?

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.

Once I have received the subsidy, is there a mandatory minimum period during which I must keep my tourism unit operational?

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.

What are the financial consequences if I am unable to sustain the operation of my unit and have to close it within three years?

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.

If I decide to establish my tourism project in a distant or remote area, are there any additional financial incentives available?

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%.

If my tourism unit qualifies for grants under more than one category, can I claim benefits from all eligible categories simultaneously?

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.

I already own an operational hotel and plan to expand it; am I eligible to receive a subsidy for this expansion under the guidelines?

Expansion projects are eligible for the subsidy provided there is a minimum 50% increase in the staying capacity of the existing establishment.

As an entrepreneur belonging to the Scheduled Caste or Scheduled Tribe category, am I entitled to any extra fiscal benefits?

Yes, entrepreneurs from SC/ST categories with 100% ownership of the tourism project are entitled to an additional 5% capital investment subsidy.

If I have incurred capital expenditure prior to the actual commencement of the unit, will that cost be considered for the grant?

Expenditure incurred up to a maximum of 05 years before commencement is considered valid if the project was executed and operated in one go.

To prove the capital cost incurred on my project, whose certification is required to be submitted along with the subsidy application?

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.

What specific documentation must I provide to officially prove the date of commercial operation of my tourism unit?

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.

Does my project need to be established within a specific timeframe to qualify for the capital investment benefits mentioned?

Your project must be established and operationalized during the operative tenure of the policy to be entitled to the capital investment subsidy.

How should I submit my application for land allocation or permissions to ensure it is processed correctly by the department?

All applications for land allocation, permissions, and subsidies should be submitted online through the State Government's Invest Portal or Single Window System.