Grants Provisioned under Tourism Policy, 2023

Grants Provisioned under Tourism Policy, 2023 aim to boost sustainable tourism in Uttarakhand by offering attractive financial subsidies and incentives to private and institutional investors. The policy remains in force till 31 March 2030, so investors can still apply for support under it.

Introduced by the Department of Tourism, Government of Uttarakhand, the policy helps investors build tourism infrastructure and create new jobs across the state. If you are an investor looking to enter the tourism sector, this policy gives you the stability and support you need to move ahead.

Grants Provisioned under Tourism Policy, 2023 - Introduction

Grants Provisioned under Tourism Policy, 2023 works as a catalyst for the sustainable growth of tourism in the state. By offering targeted financial support, the scheme invites both private and institutional investors to strengthen the tourism sector well.

The Uttarakhand Tourism Development Board (UTDB) runs the policy and handles all applications and payments. The Department of Tourism is the nodal department, and the Single Window Clearance System is the main route for applying. The policy was notified on 5 April 2023 and stays valid till 31 March 2030.

Key Information

Benefits

Grants Provisioned under Tourism Policy, 2023 provide strong financial support to new ventures and expansions. These benefits are designed to reduce the initial money burden on an investor.

Capital Subsidy for Tourism Housing Projects

This subsidy can be received either in 10 equal annual installments (10% per year) starting from the commercial operation date, or as 75% of the net State Goods and Services Tax (SGST) paid in the previous 12 months, whichever is lower. Extra annual incentives are available for marketing, training, interest payments, waste treatment, and online travel agency bookings.

Development of Tourism Products and Services

Eligible units may also get a capital grant of up to 100% of the capital asset, paid over 5 years (20% each year) or as 75% of the net SGST, whichever is lower. Additional incentives for marketing, skill training, and interest subsidy are also offered.

Turnover Linked Incentives

If a project is already running and does not receive a standard capital grant, it can claim up to 1% of the eligible turnover for residential units, foreign tourist stays, and MICE or cultural event management.

Operational Support

Investors can get a subsidy of ₹500 per person per leg for heli-transport between specific helipads. The government also gives 100% reimbursement of electricity duty for the policy period and reimburses stamp duty in five equal annual installments.

Highlights

Eligibility

To qualify for these grants, a project must meet the minimum investment and infrastructure requirements set under the relevant NIC codes within the Tourism Policy. Individuals, firms, and companies are all eligible, provided they follow the Operational Guidelines.

If the project needs land, the investor should either already own the land in Uttarakhand or buy or lease it within the state boundary. For example, if Ramesh, an entrepreneur, plans to set up a resort, his project investment must fall between the required ₹1 crore and ₹5 crore threshold, depending on the project location, to be considered for these benefits.

Application Process

Applications are submitted through the Single Window System. Follow these steps:

STEP 1 - Go to the Single Window Clearance System at investuttarakhand.uk.gov.in and register for In-Principle Approval by giving project details, land information, and the incentives you want.

STEP 2 - Wait for the District Industries Centre (for MSME projects up to ₹50 crore) or the Directorate of Industries (for non-MSME projects) to review the application and get concurrence from the related departments.

STEP 3 - Once approved by the District Level Empowered Committee (for MSME) or the State Level Empowered Committee (for non-MSME), obtain departmental clearances such as land use, fire safety, and water supply.

STEP 4 - After project completion, apply for the required registration certificates, such as those from the Tourism Department, to start commercial operations.

STEP 5 - Within 150 days from the end of the financial year, file the grant application online through the Single Window Portal using the CAF ID.

STEP 6 - The District Level Committee for Tourism will verify the project through an on-site inspection. After their report, the Integrated Tourism Committee and State Level Empowered Committee will review and finalize the payout, which is then transferred directly to the bank account.

Documents

Keep all project-related documents ready, including land deeds, registration papers, financial investment proofs, and compliance certificates as listed in the official Operational Guidelines of the Tourism Policy, 2023.

References

Read the full Operational Guidelines here

Read the official Tourism Policy 2023 document here

FAQ's

Who is eligible to apply for grants?

Any legitimate entity, firm, individual, or institution interested in the tourism sector and meeting the policy guidelines is eligible to apply.

What types of projects qualify?

Projects categorized under the Tourism Policy, including tourism housing, specific tourism products, and various services under designated NIC codes, are eligible.

How is the housing project subsidy calculated?

The subsidy is granted based on the project category (A, B, or C), ranging from 25% to 50% of the capital investment, paid in 10 equal annual installments.

What is the benefit for operational businesses?

If a business is already running but not receiving a capital grant, it may claim a Turnover Linked Incentive of up to 1% for categories like MICE events or foreign client services.

How do I apply for in-principle approval?

Visit the official Single Window System and submit the project details along with all required documentation online.

When is the deadline to apply for the grant?

The grant application must be submitted within 150 days following the close of the relevant financial year after starting commercial operations.