Madhya Pradesh Tourism Board is running the Capital Subsidy to Existing Hotels for Renovation, Modernization and Upgradation scheme in 2026, and hotel owners can apply online through the state single window portal. Under this scheme, an existing standard hotel or mini resort upgrading to Deluxe category needs a minimum investment of ₹10 crore, and a Deluxe property upgrading to 4-star or higher needs a minimum investment of ₹25 crore.
Subsidy is paid on fixed capital investment as per the rate fixed for that category in Madhya Pradesh Tourism Policy, and units in far off or interior areas get an extra 5 percent. Tourism Department of Madhya Pradesh is the main department for this scheme, and claims are processed after the upgraded property starts commercial operation.
Capital Subsidy to Existing Hotels for Renovation, Modernization and Upgradation 2026
Scheme covers hotels and resorts that are already working in Madhya Pradesh and want to move up a category instead of building something new. So a standard hotel that adds rooms, redoes interiors, improves kitchens and facilities, and reaches Deluxe standard can claim subsidy on the money spent on that upgrade work.
Two clear tracks exist. Category A is for standard hotels and mini resorts moving into Deluxe, with at least 50 rooms for hotels and 20 rooms for resorts. Category B is for Deluxe hotels and resorts moving into 4-star or higher, with at least 75 rooms for hotels and 25 rooms for resorts. Subsidy is given on capital investment made after the policy came into force, not on old spending.
Highlights of the Scheme
| Detail | Information |
|---|---|
| Scheme Name | Capital Subsidy to Existing Hotels for Renovation, Modernization and Upgradation |
| State | Madhya Pradesh |
| Main Department | Tourism Department, Madhya Pradesh Tourism Board |
| Who Can Apply | Owners of existing hotels, mini resorts and resorts |
| Minimum Investment | ₹10 crore for Deluxe upgrade, ₹25 crore for 4-star or higher upgrade |
| Extra Benefit | 5 percent extra subsidy for far off or interior areas and for full SC/ST ownership |
| Application Mode | Online |
| Official Website | tourism.mp.gov.in and sws.invest.mp.gov.in |
How to Apply Online in 2026
Whole process runs online through the Madhya Pradesh single window system and the Tourism Board subsidy module. Keep your firm papers, project cost details and building permissions ready before starting, because the claim form asks for them at the upload stage.
STEP 1 - Open the Madhya Pradesh single window portal at sws.invest.mp.gov.in and register as an investor by choosing your organisation type, such as sole proprietorship, partnership firm or private limited company.
STEP 2 - Enter your firm name, mobile number and email ID. Login details come on the same mobile number and email, so give the ones you actually use.
STEP 3 - Log in and complete your profile with PAN, GST, address and project location details. An incomplete profile blocks the subsidy form later.
STEP 4 - Take all required construction and running permissions through the single window system itself, since the same portal handles clearances from different departments.
STEP 5 - Finish the renovation or upgrade work and start commercial operation of the upgraded property. Keep the first lodging or catering bill safely, as it proves the start date.
STEP 6 - Sign up on the Tourism Board subsidy page at apply online for capital subsidy, fill the claim form and upload the CA certificate, valuation report, ownership papers and photographs.
STEP 7 - Submit the claim within one year from the date commercial operation started. Tourism Department checks the papers, does a site inspection and then sanctions the amount to your bank account.
Who Can Apply
Eligibility is decided by the existing category of the property, the money spent on the upgrade and the room count after the work is done. Points below explain the main conditions.
- Applicant should own an existing standard hotel or mini resort for the Deluxe upgrade, or an existing Deluxe hotel or resort for the 4-star and above upgrade.
- Minimum investment of ₹10 crore is required for the Deluxe upgrade and ₹25 crore for the 4-star or higher upgrade.
- Upgraded property should have at least 50 rooms for a Deluxe hotel and 20 rooms for a Deluxe resort. For 4-star or above, the count is 75 rooms for hotels and 25 rooms for resorts.
- Only capital investment made after the tourism policy came into force counts for the claim.
- Claim has to be filed within one year of starting commercial operation of the upgraded unit.
- A unit taking investment promotion support for the same project cannot claim this capital subsidy again.
- At least 70 percent of the staff should be residents of Madhya Pradesh.
Subsidy Amount and Extra Support
Subsidy on the upgrade is paid at the rate fixed for the category the property moves into, as listed in the capital subsidy table of Madhya Pradesh Tourism Board. For most hotel and resort categories the rate is 15 percent of fixed capital investment, with a ceiling set for that category.
Projects set up in far off and interior areas get an extra 5 percent capital investment subsidy. In such areas, the minimum investment limit and the room count both come down to half of the normal limit. SC and ST entrepreneurs holding 100 percent ownership also get an extra 5 percent subsidy.
After the money comes, the property has to keep running for at least 3 years and a self declaration has to be filed every year by 15 April. If the unit shuts down early, part of the money has to be returned, 80 percent if it closes inside the first year, 60 percent inside the second year and 50 percent inside the third year.
Documents Required
Papers are checked closely at the claim stage because the subsidy is linked to actual spending. Arrange the set below before filing.
- Authority letter for the person signing on behalf of the firm along with identity proof.
- Firm registration papers such as memorandum and articles of association, or the partnership deed.
- Ownership proof of the land and building, like khasra records, sale deed or lease deed with the site map.
- Project report, building permission and completion certificate from the local body.
- Total capital cost certificate from a Chartered Accountant and project cost assessment from a registered valuer or engineer.
- First lodging or catering bill as proof of the commercial operation date.
- Photographs of the finished property from three different angles.
- Cancelled cheque, bank details and PAN card copy.
Related Schemes
Owners planning other tourism work in the state can also check the capital investment subsidy for expansion of an established hotel or resort and the capital investment subsidy for a new standard hotel or mini resort. Only one category can be chosen for the same project.
References
Full category wise subsidy table and conditions are given on the capital subsidy page of Madhya Pradesh Tourism Board.
Claim rules are explained in the rules and procedure for claiming capital subsidy and in the Madhya Pradesh Tourism Policy document.
Year wise sanction and payment list is available in the capital subsidy disbursement status report. For queries, use the contact page of Madhya Pradesh Tourism Board.
FAQ's
Is this scheme still running in 2026?
Yes. Capital subsidy for renovation, modernization and upgradation of existing hotels is still listed on the Madhya Pradesh Tourism Board capital subsidy page, and online claims are being accepted.
How much investment is needed to claim the subsidy?
₹10 crore minimum for upgrading a standard hotel or mini resort into Deluxe category, and ₹25 crore minimum for upgrading a Deluxe property into 4-star or higher category.
By when should the claim be filed?
Within one year from the date the upgraded property starts commercial operation. Delay beyond that makes the claim liable to be rejected.
Can one property claim under two categories together?
No. Only one category can be chosen for a project, and a unit taking investment promotion support for the same project cannot claim capital subsidy again.
What happens if the hotel closes soon after getting the subsidy?
Money has to be returned in part, 80 percent if the unit closes within one year, 60 percent within two years and 50 percent within three years.
Is there any hiring condition attached?
Yes, at least 70 percent of the total staff should be residents of Madhya Pradesh.