What you get
Under Uttarakhand Tourism Policy, 2023, the following grants are allowed to investors:- | The following capital subsidy is provided for tourism projects to be set up by making capital investment in the tourism sector in the state. Grants are admissible: | Maximum capital grant for housing projects: | - Category A – up to 25% | - Category B – up to 35% | - Category C – up to 50% | The grant will be given as per the following details: | a) The maximum admissible capital subsidy shall be disbursed in 10 equal annual installments from the date of commencement of commercial operations, i.e., 10% of the total capital subsidy per annum; | OR | b) The subsidy amount shall be equivalent to 75% of the net State Goods and Services Tax (SGST) paid by the unit during the preceding 12 months, + applicable additional incentives, whichever is lower. | Additional Annual Incentives for Residential Projects: | i. Incentive for Marketing and Publicity – Up to a maximum of 1% of the capital grant. | ii. Incentive for Training and Skilling – Up to a maximum of 0.5% of the capital grant. | iii. Interest Subsidy – Up to a maximum of 1% of the capital subsidy. | iv. Incentive for Waste Treatment – Up to a maximum of 0.25% of the capital subsidy. | v. Incentive for Bookings through Online Travel Agencies/Platforms Developed by the State – Up to a maximum of 0.25% of the capital grant. | - Capital Grant for Development of Tourism Products and Services – Grant of up to 100% of the capital asset | Grant will be provided as per the following details: | a) Capital subsidy shall be disbursed in 5 equal annual installments from the date of commercial operation, i.e., 20% of the capital subsidy per annum, or | b) The subsidy shall be 75% of the net State Goods and Services Tax (SGST) paid by the unit for the last 12 months, + additional incentive, whichever is lower. | Additional Annual Incentives for Development of Tourism Products and Services | i. Incentive for Marketing and Publicity – Up to a maximum of 2% of the capital grant. | ii. Incentive for Training and Skilling – Up to a maximum of 2% of the capital grant. | iii. Interest Subsidy – Up to a maximum of 2% of the capital subsidy. | iv. Booking through Online Travel Agency/Platform Developed by the State – Up to a maximum of 1% of the capital grant. | Turnover Linked Incentive – A provision of turnover-based grants is available for tourism projects that are already operational and not receiving a capital grant. The following incentives are permissible: | a) Premium Residential Units – Up to a maximum of 1% of the eligible turnover. | b) Incentive on Foreign Tourist Stay – Up to a maximum of 1% of the eligible turnover. | c) MICE, Organization of Art, Social and Cultural Events, Fairs, and Festivals – Up to a maximum of 1% of the eligible turnover. | Incentive for Heli-Transport – From Sahastradhara, Jolly Grant, and Pantnagar helipads to the nearest residence or helipad, a subsidy of ₹500 per person per leg shall be provided to the unit for helicopter transport. | Reimbursement of Electricity Duty – 100% reimbursement of electricity duty shall be provided to new eligible tourism units for the duration of the policy period. | Reimbursement of Stamp Duty – New eligible tourism units shall receive reimbursement of the applicable stamp duty in five equal installments. | To qualify for grants under the Tourism Policy 2023, the minimum investment requirement for new or expansion projects ranges from ₹1 crore to ₹5 crore, depending on the category and location of the project. Investors must also ensure the provision of minimum required infrastructure, compliance with prescribed conditions, and adherence to other regulations specified in the guidelines. Detailed information is available in the Operational Guidelines.
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
Who is eligible to apply for grants?
Any legitimate entity or investor, individual, firm, company, or institution, interested in investing in the tourism sector and meeting the eligibility criteria specified in the Tourism Policy 2023 and its Operational Guidelines is eligible to apply.
What types of tourism projects are eligible for capital subsidies?
Eligible projects include tourism housing projects, tourism products, and tourism services identified under various NIC codes mentioned in the policy.
What are the categories and corresponding capital subsidy percentages for housing projects?
The capital subsidy for housing projects is determined by the project’s category: | - Category A – up to 25% | - Category B – up to 35% | - Category C – up to 50%
How is the capital subsidy for housing projects disbursed?
The subsidy is provided in 10 equal annual installments (10% of the total per year) from the date of commercial operation, or alternatively, 75% of the Net State GST (SGST) paid by the unit for the last 12 months plus any additional incentive, whichever is lower.
What is the capital grant available for tourism products and services?
A capital grant up to 100% of the capital asset may be provided for developing tourism products and services, subject to eligibility and approval.
How is the capital subsidy for tourism products and services disbursed?
It is disbursed in five equal annual installments (20% per year) from the date of commercial operation, or 75% of the Net SGST paid during the last 12 months, whichever is lower.
What is the Turnover Linked Incentive and who can avail it?
The Turnover Linked Incentive is provided to tourism projects that are already operational and not availing any capital grant. The incentives include: | - Premium Residential Units – up to 1% of eligible turnover | - Foreign Tourist Stay – up to 1% of eligible turnover | - MICE/events/fairs/festivals – up to 1% of eligible turnover
Is there any incentive for heli-transport operations?
Yes. A subsidy of ₹500 per person per leg is provided to tourism units operating helicopter transport from Sahastradhara, Jolly Grant, and Pantnagar helipads to the nearest residential location.
Are there provisions for reimbursement of electricity and stamp duty?
Yes. | - Electricity Duty: 100% reimbursement to new eligible tourism units for the policy period. | - Stamp Duty: Applicable stamp duty reimbursement in five equal installments.
How can investors apply for in-principle approval?
Investors must apply online for In-Principle Approval through the Single Window System at https://investuttarakhand.uk.gov.in, by filling in project, land, and scheme details, and uploading required documents.
When can investors apply for the grant after project completion?
Investors can apply for the grant only after commencing commercial operations, and must submit their online application within 150 days from the end of the relevant financial year.