Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease

DETAILS The scheme "Capital Investment Subsidy for Establishment of Heritage Hotel where the Heritage Assets are obtained from Tourism Department on Lease" was launched by the Tourism Department, Government of Madhya Pradesh. The scheme aims to encourage private investment in the conservation and operationalization of heritage properties owned by the government by converting them into heritage hotels. The scheme provides a capital investment subsidy of 15% against fixed capital investment, subject to a maximum ceiling of ₹5,00,00,000/-. The applicant must invest a minimum capital expenditure of ₹10,00,00,000/- in the project approved by the department. The scheme is implemented by the Madhya Pradesh Tourism Board. The applications for this scheme are accepted online through the State Government's Invest Portal. BENEFITS The scheme provides a capital subsidy of 15% against the Fixed Capital Investment made in the project. The maximum ceiling for the capital subsidy is ₹5,00,00,000/-. SC/ST category entrepreneurs who establish the tourism project under 100% ownership shall be entitled for an additional 5% capital investment subsidy. Projects established in distant and ulterior areas are entitled to an additional 5% Capital Investment Subsidy. Disbursal Conditions The unit must operate continuously for at least three years from the date of availing the subsidy. The unit must submit a self-declaration on or before the 15th of April every year regarding the continuous operation of the unit. 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. Any unit claiming Investment Promotion Assistance (for Large/Mega projects) shall not be entitled to capital subsidy under this scheme. If the unit is entitled to a grant/subsidy in more than one category, the applicant must choose only one category. ELIGIBILITY The applicant must establish a Heritage Hotel project. The applicant must have obtained the Heritage Assets from the Tourism Department on a lease basis. The applicant must incur a minimum capital expenditure of ₹10,00,00,000/- as approved by the department. The applicant must be a private investor, which may include a proprietary concern, partnership firm, company, or other legal entity. The applicant must have obtained the heritage asset through the open bidding process conducted by the Empowered Committee. The applicant must execute and operate the entire project in one go, or the capital expenditure incurred up to a maximum of 05 years prior to the commencement of the unit will be considered for the calculation of the capital grant. The applicant must ensure the project is certified as a heritage hotel by the Tourism Department based on the framed rules and procedures.