Government subsidies for tourism

1. PRASAD Scheme

The Ministry of Tourism launched the PRASAD scheme that aims at integrated development of pilgrimage destinations in a prioritised, planned, and sustainable manner in order to provide a complete religious tourism experience. Government subsidies for tourism

Program Duration:

This scheme is proposed to be implemented as a Central Sector Scheme during the 14th finance commission period i.e. March 2020 and beyond.

Funding of PRASAD Scheme:

To implement the PRASAD scheme a Mission Directorate is set up in the Ministry of Tourism. The Ministry provides Central Financial Assistance to State Governments for the promotion of tourism at identified

For components within public funding, the Central Government provides 100% funds and for the  improvement in the sustainability of the project the scheme seeks to involve Corporate Social Responsibility (CSR) and the Public-Private Partnership (PPP) as well.

The Budget provision of Rs. 15.60 crore was made in revised estimates 2014-2015. The first installment of Rs. 85.78 lakh was released under this scheme for the development of basic facilities at Vishnupad Temple, Gaya in Bihar.




2. Marketing  Development Assistances (MDA) Scheme

The Marketing Development Assistance Scheme (MDA), administered by the Ministry of Tourism, Government of India, provides financial support to tourism service providers, i.e. hoteliers, travel agents, tour operators, tourist transport operators.

Financial support:

Under the Scheme would be available to companies with foreign exchange earnings up to a maximum
of Rs. 15.00 crore during the preceding financial year. In respect of tourism service providers from the state of Jammu & Kashmir and States in the North Eastern region, the service providers not having any foreign exchange earnings but with a total turnover of up to Rs. 20 crore would also be eligible.

Pattern of Funding:

The Ministry of Tourism, Government of India gives maximum grant of Rs. 2.50 lakh to the Tourism Service Providers for promotional activities abroad by way of reimbursement towards air fare, participation fee, hotel accommodation as well as to the State Governments/ UT Administrations.

Eligibility Conditions

 (i) The Tourism Service Providers must be approved by the Ministry of Tourism, Government of India, or by the concerned State / Union Territory Tourism Department.

 (ii) The approved Tourism Service Providers with Foreign Exchange Earnings above Rs. 2.00 Cr., up to a maximum of Rs. 25.00 Crore. in to be eligible for financial support under the MDA scheme.

 (iii) Tourism Departments of State Governments / UT Administrations are also eligible to avail benefits under the Scheme. However, the above eligibility conditions are
NOT applicable to them


For Tourism Service Providers Financial support for Study Tours, participation in travel shows / exhibitions/ Road Shows (organized by the Ministry of Tourism) in the overseas markets would be extended as per following details, subject to an overall ceiling of Rs. 3.50 Lakh per case / tour:


Extent of Support

Economy class air fare for travel between India to another country
and from there to a group of countries by air / rail.


Cost of built up / furnished stall, electricity and water charges,
participation fee, etc., at travel fair / exhibitions held overseas


Lodging expenses on overseas tour

Max. 5 nights with an upper ceiling of room rate at Rs. 10,000/- per



For Tourism Departments of State Governments / UT Administrations



Extent of Support

Cost of built up / furnished stall, electricity and water charges,
participation fee, etc., at travel fair / exhibitions held overseas.

Overall ceiling of Rs. 3.50 Lakh.

Since, the representatives of State Govts and UTs are provided TA/DA
by the States/UTs, the provisions of financial assistance towards
international air fare and lodging are not applicable to them.