Madhya Pradesh government is giving an extra 5% capital investment subsidy to tourism projects built in distant and ulterior areas of the state, and the official capital subsidy pages of Madhya Pradesh Tourism Board were checked on 03 August 2026 and are still live. Along with the extra 5%, there is no upper ceiling on the subsidy amount, and both the minimum investment limit and the room count requirement drop to half of the normal limits given in the tourism policy.
This support runs under Madhya Pradesh Tourism Policy, and applications for capital subsidy are handled online by Madhya Pradesh Tourism Board. Projects have to come up outside the Nagar Nigam and planning area limits of Indore, Bhopal, Ujjain, Dewas, Sagar, Gwalior, Jabalpur, Katni, Rewa and Satna, which is the main test of whether your location counts as a distant or ulterior area.
Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas
Idea behind this support is simple. Hotels and resorts mostly come up near big cities, so remote districts stay empty of decent stay options. To fix that, the tourism department gives 5% more subsidy on fixed capital investment than the normal rate for that project category, and it removes the maximum ceiling that usually applies. So a standard hotel category that normally gets 15% with a ₹50 lakh cap can get 20% with no cap when it is built in a distant area.
Room and money conditions also get easier. If your project category normally asks for ₹10 crore investment and a fixed number of rooms, in a distant area you need only 50% of both. That single relaxation is what makes small and mid-size projects workable in far-off blocks.
How to Apply Online
STEP 1 - Open the Madhya Pradesh single window investor portal at sws.invest.mp.gov.in and register your firm or company. Enter the firm name, PAN, promoter details and a working mobile number and email, then verify the account through the OTP sent to you.
STEP 2 - Get all required permissions before construction, such as land conversion, pollution control board consent and forest department NOC where the site is near a park or sanctuary. Keep the sanction letters safely as they are checked later.
STEP 3 - Complete construction and start commercial operations. Only projects that are built and running during the operative period of the tourism policy are counted for capital subsidy.
STEP 4 - Go to the Apply Online for Capital Subsidy page of Madhya Pradesh Tourism Board, sign up or log in, and fill the capital subsidy claim form within one year from the date your unit started commercial operations.
STEP 5 - Upload the project report, chartered accountant or engineer certificate of capital cost, land papers and site photographs, then submit. Tourism department checks the papers, may do a site visit, and the approved amount is paid to your account after sanction.
Who Can Apply
This support is for business entities and individual promoters who set up a recognised tourism unit in a far-off part of the state. Before you spend money on the project report, check these conditions carefully.
- Project must be a tourism unit as defined by the tourism department, like a hotel, mini resort, resort, wellness centre or a similar approved category.
- Site must be outside the Nagar Nigam and planning area boundaries of Indore, Bhopal, Ujjain, Dewas, Sagar, Gwalior, Jabalpur, Katni, Rewa and Satna.
- No similar unit should already exist within a 10 km radius of the proposed site, although a unit run by Madhya Pradesh government or its undertaking is not counted for this 10 km test.
- At least 50% of the minimum investment and room count fixed for that category in the tourism policy has to be met.
- Unit has to give 70% of its jobs to residents of Madhya Pradesh.
Wildlife resorts near notified national parks and tiger reserves can also fit here, but a unit that qualifies under more than one category has to pick only one. A unit claiming investment promotion assistance for large, mega or ultra mega projects cannot claim capital subsidy under any other head.
Scheme Highlights
| Detail | Information |
|---|---|
| Scheme Name | Additional Subsidy to Establish Tourism Projects in Distant and New Ulterior Areas |
| State | Madhya Pradesh |
| Main Department | Tourism Department, Madhya Pradesh Tourism Board |
| Eligible People | Business entities and promoters setting up tourism units in distant areas |
| Benefit | Extra 5% capital investment subsidy, no upper ceiling on subsidy amount |
| Relaxation | Minimum investment and room count reduced to 50% of normal limit |
| Apply Dates | Within one year of starting commercial operations |
| Application Mode | Online |
| Official Website | tourism.mp.gov.in |
Benefit Amount and Working
Base capital subsidy rate depends on the project category. Most hotel and resort categories carry 15% of fixed capital investment, infrastructure creation on leased heritage land carries 25%, and ropeway work in hard to reach tourist or forest areas carries 40%. In a distant or ulterior area, 5% is added on top of whichever base rate applies to your category, and the usual maximum ceiling in rupees does not apply.
Resorts coming up within a 20 km radius of notified national parks, tiger reserves and sanctuaries have their own 20% wildlife category with investment and room limits set by forest area group. If your project fits both that group and the distant area group, you have to choose one.
Related capital subsidy categories on this site are worth reading before you finalise the project type, such as Capital Investment Subsidy to Establish a New Deluxe-Three Star or Higher Category New Hotel and Resort, Capital Investment Subsidy for Establishment of New Resort and Wellness Centre and Investment Promotion Assistance to Setup Large, Mega and Ultra Mega Tourism Projects.
Required Documents
Keep the paperwork ready before you open the claim form, because incomplete files are the usual reason claims get delayed.
Business papers: Memorandum and articles of association, partnership deed or firm registration certificate as per your business type, along with the board resolution or authority letter for the person signing.
Identity and land papers: PAN card of the unit, ID proof of the authorised person, certified Khasra copy and the registered sale deed or lease deed of the project land.
Money and project papers: Detailed project report, capital cost certificate from a chartered accountant or a certified engineer, bank loan sanction papers if any, and dated site photographs from different angles.
Clearances: Pollution control board consent, forest department NOC where the site falls near a protected area, and the fire and local body permissions for the building.
Help and Contact
For questions on eligibility, claim status or documents, contact Madhya Pradesh Tourism Board through the contact page on tourism.mp.gov.in. Sanction and payment lists of capital subsidy are published year wise by the board, so you can check whether your claim has moved to payment stage. Investor side queries on registration are handled through the single window portal helpdesk.
References
Capital Subsidy Details, MP Tourism Board | Madhya Pradesh Tourism Policy Document | Rules and Procedure for Claiming Capital Subsidy | Madhya Pradesh Single Window Investor Portal
FAQ's
How much extra subsidy is given in distant and ulterior areas?
An extra 5% on fixed capital investment over the base rate of your project category, and the usual rupee ceiling on the subsidy is removed for such areas.
Which areas count as distant or ulterior?
Sites outside the Nagar Nigam and planning area limits of Indore, Bhopal, Ujjain, Dewas, Sagar, Gwalior, Jabalpur, Katni, Rewa and Satna, with no similar unit inside a 10 km radius.
By when should the claim be filed?
Within one year from the date the unit starts commercial operations. Claims filed after that window are normally not accepted.
Is there any local job condition?
Yes, 70% of the jobs in the unit have to go to residents of Madhya Pradesh, and this is checked at the time of the claim.
What happens if the unit shuts down soon after getting the subsidy?
A part of the amount has to be returned, roughly 80% if it closes in the first year, 60% in the second year and 50% in the third year.
Can a project claim under two categories together?
No, only one category can be chosen. A unit taking investment promotion assistance for large, mega or ultra mega projects cannot take capital subsidy separately.
Do expansion projects get this support?
Yes, if the expansion raises the existing staying capacity by at least 50% and the other conditions of the policy are met.