Madhya Pradesh government is giving a 15% capital investment subsidy to private investors who set up adventure tourism, water tourism, water sports, cruise or house boat, amusement park, water park, sound and light show, laser show or camping facilities in the state. The subsidy is part of the Madhya Pradesh Tourism Policy 2025 and goes up to a maximum of ₹3,00,00,000 (₹3 crore) against the fixed capital investment.
Projects need a minimum capital expenditure of ₹5,00,000 to qualify for this support. The scheme is managed by the Madhya Pradesh Tourism Board and covers permanent facilities like jetties, platforms, equipment, tents, navigation infrastructure and other public amenities. Application process is online through the state investment portal and the MP Tourism Board website.
Capital Investment Subsidy for Tourism Infrastructure in Madhya Pradesh - Introduction
This scheme runs under the Madhya Pradesh Tourism Policy 2025, which was notified on 18 February 2025 and stays valid for 5 years. Tourism projects that are established and start commercial operations during this period are entitled to the capital investment subsidy. Private investors and registered business entities can claim 15% of their fixed capital investment as subsidy, subject to the maximum limit of ₹3 crore.
Whether the plan is to build jetties and platforms for water tourism, set up an amusement park or water park, arrange sound and light shows, or start a camping facility with tents, this scheme helps with the cost. The subsidy covers creation of infrastructure, installation of permanent facilities, purchase of equipment and setting up of tents. The exact subsidy amount depends on the type of activity and the total capital investment.
In 2026 the state has kept its focus on this sector. The Madhya Pradesh Tourism Board organised the Adventure Tourism Seminar 2026 with the Adventure Tour Operators Association of India (ATOAI), and the state government has announced aggressive investment subsidies to attract tourism projects. So the scheme is active and open for new applications.
Key Information
| Scheme Name | Capital Investment Subsidy for Creation of Infrastructure and Installation of Permanent Facility or Acquisition of Equipment or Tents and Facilities to Establish Adventure Tourism, Water Tourism, Water Sports, Cruise or House Boat, Navigation Infrastructure, Amusement Park, Water Park, Sound and Light Show, Laser Show, Camping |
|---|---|
| Level | State |
| Scheme For | Individual |
| Beneficiary State | Madhya Pradesh |
| Category | Travel & Tourism, Business & Entrepreneurship |
| Eligible People | Business Entity |
| Benefit Type | Cash |
| DBT Scheme | No |
| Main Department | Tourism Department |
Benefits
This scheme helps business owners with the following support:
- Capital Subsidy: 15% of the actual fixed capital investment is given back as subsidy.
- Maximum Financial Limit: up to ₹3,00,00,000 (₹3 crore) can be claimed per project.
- Qualifying Infrastructure: permanent structures like jetties, platforms, equipment, parking, electricity supply, water infrastructure and public amenities are covered.
- Extra 5% for SC/ST Entrepreneurs: entrepreneurs from SC or ST categories with 100% ownership get an additional 5% capital investment subsidy.
- Distant Area Support: projects in distant and ulterior areas get an additional 5% subsidy, and the minimum investment limit is reduced to 50% of the normal limit.
- Investment Promotion Assistance: large tourism projects with ₹10 crore or more investment can instead claim 30% investment promotion assistance, up to ₹15 crore for large, ₹30 crore for mega and ₹90 crore for ultra-mega projects.
Eligibility
To benefit from this scheme, applicants should meet the following conditions:
- Applicant must be a private investor or a registered business entity building a tourism project.
- Project must fall under approved categories such as adventure tourism, water tourism, water sports, amusement parks, water parks, sound and light shows, laser shows or camping.
- Minimum capital expenditure of ₹5,00,000 must be completed, as verified by the department.
- Project must become operational within the tenure of the Tourism Policy 2025, which is valid till 2030.
- Subsidy application must be submitted within one year from the date of starting commercial operations.
Example: If Ravi starts a water park in Bhopal, he needs to keep all facility receipts ready to prove the ₹5,00,000 minimum investment and qualify for his subsidy claim.
Application Process
STEP 1 - Register on the official Invest MP portal at sws.invest.mp.gov.in as a Vendor or Investor by selecting the correct organization type, such as Private Limited, Proprietorship or Individual.
STEP 2 - Enter the firm name and the name of the authorized person, then provide a valid mobile number and email ID to receive login credentials and application updates.
STEP 3 - Complete the profile after the first login so the account is ready for the scheme application.
STEP 4 - Secure the required local permits through the online single window system before starting construction.
STEP 5 - Complete the construction, reach the minimum required investment and begin commercial operations.
STEP 6 - Submit the subsidy application online within one year of operations, and attach all required documents and photos. The Tourism Department then verifies and processes the claim. Capital subsidy cases are decided within 45 days.
Applicants can also apply directly through the Apply Online for Capital Subsidy page on the MP Tourism Board website.
Documents
Keep the following documents ready for the application:
| Category | Required Documents |
|---|---|
| Entity Proofs | PAN card, Memorandum of Association, Partnership deed or registration certificate, and proof of authorized signatory. |
| Land/Location | Certified Khasra, Site Map, Sale or Lease deed, and TNCP permissions. |
| Technical | Project report, building permission, approved floor plans, and NOCs from Forest or Jal Shakti departments. |
| Financial | Project cost certificates from an engineer or valuer and a Chartered Accountant, plus your firm's cancelled cheque. |
| Operational | Proof of commercial commencement such as your first service bills and unit photographs from three different angles. |
References
Official Guidelines - Tourism Policy 2025 | Capital Subsidy Details - MP Tourism Board | Apply Online for Capital Subsidy | Contact Support
FAQ's
Is this scheme still active in 2026?
Yes. The scheme runs under the Madhya Pradesh Tourism Policy 2025, which was notified on 18 February 2025 and stays valid for 5 years, so applications are open till 2030.
Is there a deadline to apply after starting operations?
Yes, you must submit your application within one year of your project's commercial commencement date.
Are there local employment rules?
For new Deluxe and Standard hotels, at least 70% of the total staff must be residents of Madhya Pradesh to qualify for the subsidy.
How long must I operate the unit after receiving the subsidy?
You must keep the facility running for at least 3 years and provide an annual self-declaration of operation.
What happens if I close my unit early?
If you close the business within 1, 2, or 3 years, you are required to refund 80%, 60%, or 50% of the subsidy, respectively.
Can I claim benefits for an expansion project?
Yes, expansion projects qualify if you increase your existing staying capacity by at least 50%.
Do SC/ST entrepreneurs get extra benefits?
Yes, entrepreneurs from SC or ST categories holding 100% ownership receive an additional 5% capital investment subsidy.