Introduction: MP Tourism Subsidy
Under this Policy, the following activities shall be treated as Tourism Projects to avail various facilities/subsidies. The definition of Tourism Projects shall be determined as per the notification of the Government of India from time to time or shall be determined by the Tourism Department, Government of Madhya Pradesh:
1 Hotel (Star, Deluxe, and Standard Class)
2 Health Farm/Resort/Health and Wellness Resort
3 Resort, Camping Site, and Fixed Tenting Units
4 Motel and Wayside Amenities
5 Heritage Hotel
6 Convention Centre (MICE)
7 Museum / Aquarium / Theme Parks
8 Bed and Breakfast/Home Stay Units
9 Golf Course
10 Ropeway
11 Water Park and Water Sports
12 Amusement Park
13 Caravan Tourism
14 Cruise Tourism
15 House Boat
16 Film studio and development of infrastructure and installation of equipment for film making.
17 Adventure Sports
18 Sound and light show / Laser show
19 Sea Plane
20 Amphibian Tourist Vehicle
21 Aero sports & Aero Sports Training Centre/Academy
22 Heritage Cafeteria / Motel
23 Wildlife Resorts
24 Gram Stay/Farm Stay
25 Other activities related to tourism as notified by the Tourism Department of Central/State Government, from time to time.
Subsidy for Tourism Projects
Tourism Projects established and operationalized during the operative tenure of this policy shall be entitled to a capital investment subsidy. Considering the type of activity and the capital investment, the capital subsidy shall be granted as mentioned below:
S. No. | Subsidy Scheme | Minimum capital expenditure, as approved by the department (in lakh rupees) | Percentage of Subsidy against Fixed Capital Investment | Maximum ceiling of Subsidy (Rs. in lac) | Other conditions |
6.1 | Capital subsidy for Heritage Hotel under Proprietorship | 300 | 15% | 200 | – |
6.2 | Capital Investment subsidy for the establishment of Heritage Hotel where the Heritage Assets are obtained from the Tourism Department on Lease | 1000 | 15% | 500 | – |
6.3 | Capital Investment subsidy to establish a new Deluxe/Three Star or Higher category new Hotel and Resort | 1000 | 15% | 500 | Minimum 50 lettable air-conditioned rooms should be available. |
6.4 | Capital Investment subsidy for establishment of new Hotel/Mini Resort of Standard category | 200 | 15% | 50 | Minimum air-conditioned 25 lettable rooms for hotel and 10 rooms for resorts should be available. |
6.5 | Capital Investment subsidy for establishment of new Resort and Wellness Centre (Including Resort equipped with Ayurvedic, Yoga, and Naturopathic treatment) | 500 | 15% | 200 | Unit should be established as per the definition, criterion, and standards defined by the Government of India/State Government. |
6.6 | Capital Investment Subsidy for expansion of established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel | 100 | 15% | 500 | Expansion in terms of minimum 50% increased in staying capacity will only be eligible for subsidy. |
6.7 | Capital Investment Subsidy for establishment of 500 or more seater convention centre as above cum Hotel under MICE (Meetings, Incentives, Conferences, Exhibitions) | 2000 | 15% | 1000 | Project must be established in such a way as to conform to the criteria/standards laid down by the Government of India for convention centres. Seating capacity of the main convention hall alone should be 500 or more. |
6.8 | Capital Investment Subsidy for creation of infrastructure along with installation of equipment to establish Film Studio, Film making, Museum, Aquarium, Theme Park | 100 | 15% | 500 | – |
6.9 | Capital Investment subsidy for creation of infrastructure and installation of permanent facility/acquisition of equipment/Tents and | 05 | 15% | 300 | Installation of permanent facility/infrastructure shall mean creating/installing platform/Jetty/equipments/parking sites/electricity facility/ |
6.10 | Capital Investment subsidy for establishment of way side Amenities under Green Field/Franchise Model with minimum investment of Rs. 25.00 lakh | 25 | 15% | 50 | Units established and operated as per Departments way side Amenities Policy 2016 at an identified site or at a site approved by the Managing Director, M.P. Tourism Board. |
6.11 | Capital Investment subsidy for creation of infrastructure such as power supply, water supply, approach road, sewage and drainage system on land and heritage assets obtained from Tourism Department on lease basis. | 50 | 25% | 300 | – |
6.12 | Installation of Ropeway infrastructure for transport in inaccessible tourist places/forest areas. | 100 | 40% | 500 | – |
6.13 | Capital subsidy for establishment of Sea Plane, Amphibian Tourist Vehicle and Aero Sports and Aero Sports Training Centre/Academy | 100 | 25% | 1000 | Subsidy shall be given after one year from the date of operation of Aero Sports & Aero Sports Academy/Training Centre. For Sea Plane & Amphibian Tourist Vehicles, subsidy shall be released as follows: |
Special Incentives For Wildlife Resorts
Category of Forest Area | Name of Forest Area | Minimum Capital Expenditure, as approved by the department (Rs in crore) | Minimum Number of Rooms | Capital Subsidy | Maximum Ceiling of Capital Subsidy (Rs in crore) |
A | Kanha, Bandhavgarh, Pench Tiger Reserve, Ratapani Tiger Reserve & adjacent National Parks & Sanctuaries. | 5.00 | 10 | 20% | 1.00 |
B | Panna & Satpuda Tiger Reserve and adjacent National Parks & Sanctuaries. | 3.00 | 07 | 20% | 2.00 |
C | Sanjay Dubri Tiger Reserve, Kuno National Park, Veerangana Durgavati Tiger Reserve, Madhav National Park, Gandhi Sagar and other protected areas and adjoining national parks and sanctuaries and all other national parks and sanctuaries of the state except the forest areas falling in the above category “A” and “B”. The new entry routes (safari gates) of the forest areas described in the above category “A” and “B” will be considered in the category “C”. | 1.00 | 05 | 20% | 3.00 |
Additional Subsidy for Tourism Projects in Distant & New Ulterior Areas
- An extra 5% Capital Investment Subsidy for tourism projects in remote areas.
- Minimum investment and number of rooms required will be 50% of the standard limit.
- No upper limit on the maximum capital subsidy amount.
- Eligibility conditions will be determined by the Madhya Pradesh Tourism Department.
Capital Subsidy for Renovation/Modernization & Upgradation of Existing Hotels
A. Upgrading standard hotels/mini-resorts to Deluxe (min. 50 rooms for hotels, 20 rooms for resorts).
- Minimum investment: ₹10 crore
B. Upgrading deluxe hotels/resorts to 4-star or higher category (min. 75 rooms for hotels, 25 rooms for resorts).
- Minimum investment: ₹25 crore.
C. Subsidy applicable only for capital investments made after approval.
Investment Promotion Assistance for Large/Mega/Ultra-Mega Tourism Projects
Tourism projects categorized as Large, Mega, or Ultra-mega are eligible for Investment Promotion Assistance based on the following criteria:
Category
| Minimum Capital Investment | Minimum Employment (MP Residents) | Investment Assistance (% on Capital Investment) | Max Assistance (₹ Cr.) | Disbursement (Year-wise % of Assistance) |
Large | ₹10 Cr or more | 50 | 30% | 15 | 10% (1st year), 10% (2nd), 5% (3rd & 4th) |
Mega | ₹50 Cr or more | 100 | 30% | 30 | 10% (1st year), 10% (2nd), 5% (3rd & 4th) |
Ultra-Mega | ₹100 Cr or more | 200 | 30% | 90 | 10% (1st year), 10% (2nd), 5% (3rd & 4th) |
- Investment Assistance: 30% of the capital investment made by the unit.
- Payout Distribution: Assistance is disbursed over four years, with 10% in the first two years and 5% in the last two years.
Subsidy For Responsible Tourism
- Eco-Tourism Certification:
- Units certified by the Eco Tourism Society of India can receive 100% reimbursement of certification costs, up to ₹1 lakh.
- Pollution Control Mechanism:
- 25% subsidy (up to ₹50,000) on investment in pollution control measures.
- A minimum investment of ₹1 lakh is required.
Special Incentives for SC/ST Entrepreneurs
- Entrepreneurs from SC/ST categories establishing 100% owned tourism projects will get an additional 5% capital investment subsidy.
Phase-wise Incentives & Subsidy for Large/Mega/Ultra-Mega/Heritage Projects
- Eligible projects can receive grants/incentives based on approved implementation timelines.
- Mandatory project completion phases:
- Phase 1: Within 2 years
- Phase 2: Within 3 years
- Final Phase: Within 5 years
Assistance for Tourism Marketing
- National Events:
- 50% financial assistance for space/stall costs.
- Max limit: ₹1 lakh.
- International Events:
- 50% financial assistance (up to ₹2 lakh) on stall hiring & economy-class airfare for 1 person.
- Participation Limit:
- Each unit can participate in only 4 events per year.
- Support for Self-Help Groups & Tourism Cooperatives:
- 100% grant for expenses on stall hiring, AC-II train fare (for 2 persons), or economy airfare (for 1 person).
- Max limit: ₹1 lakh for national/international events.
Special Grant for Hot Air Balloon Operations
- 50% capital subsidy (excluding land cost) for setting up Hot Air Balloon activities.
- Minimum investment: ₹5 lakh.
Capital Subsidy for New Tourism Projects on Tourism Dept. Assets
- Eligibility: Investment of ₹1 crore or more in a new tourism project.
- Applicable for:
- Projects on leased/management contract/license units of Tourism Corporation.
- Land allotted on lease by the Board.
- Surplus land in brownfield/greenfield way-side amenities.
- Subsidy: As per eligibility criteria in the policy.
Additional Capital Grant for Electric Cruises
- 5% additional capital grant on approved project costs.
- Encourages the use of electric cruises under the policy provisions.
Golf Tourism & Commercial Use of Land
- Commercial Use:
- Up to 10% of Tourism Department allotted land can be used for commercial purposes.
- Subject to approval by the Empowered Committee.
- Land/infrastructure can be sub-leased within lease period.
- Golf Tourism Promotion:
- Capital grants as per Clause 6.19 of the policy.
- Commercial uses beyond policy guidelines not eligible for grants.
- Public-Private Partnership (PPP) model projects for private investment.
Eco and Adventure Tourism
- Tourism activities will be conducted in notified areas under the Madhya Pradesh Forest (Entertainment and Wildlife Experience) Rule 2015.
- Exclusion: Forest areas notified as Sanctuaries or National Parks under the Wildlife (Conservation) Act, 1972 are not eligible.
The Madhya Pradesh Tourism Board will encourage private sector participation in these areas.
- The Tourism Department can identify and develop new areas for Eco-Adventure Tourism beyond those already notified. Potential activities include Camping, Trekking, Angling, Water Sports, Safaris, Rock Climbing, Hot Air Ballooning, etc.
- To attract private investment, the department can offer land on lease or license.
- Leasing procedures will follow Clause 9 of the policy.
- Land can also be given on license, especially when massive or permanent construction is not required.
- Generally, land is transferred to the Tourism Department before licensing, but if not possible, a license can be granted with department consent.
- Licensing terms (duration, conditions, fees) will be set by an Empowered Committee. Licenses will be granted for 5 to 15 years.
- A single location can have multiple licensees.
- Detailed guidelines for granting licenses will be issued.
- Rural & Agro Tourism will be promoted by enhancing infrastructure.
- Registered Cooperative Societies can apply for land licenses for adventure tourism.
Film Tourism
- The Tourism Department will coordinate with other departments to help film producers obtain legal permissions for local-level shooting. The General Administration Department will issue orders authorizing the Tourism Department to take necessary steps.
- Capital Investment Subsidy will be available for developing permanent infrastructure and installing
Water Tourism
- The Tourism Department has the authority to conduct tourism activities in water bodies under Narmada Valley Development Authority, Water Resources Department, and State Government.
- Land near water bodies (river banks, islands) can be allotted to private investors as per policy provisions.
- Licenses for houseboats, cruises, motorboats, and water sports will be granted while considering the carrying capacity of the water bodies. Licensing will be managed by the Madhya Pradesh Tourism Board and an Empowered Committee.
- The Tourism Department will ensure comprehensive planning and infrastructure development for water tourism.
- Jetty/Boat clubs established by the Tourism Department and nearby lands will be given to licensed operators to run their activities independently. Similarly, land at cruise, seaplane, and amphibian vehicle sites will be given to licensees for water tourism activities.
