Uttarakhand Tourism Entrepreneur Promotion Scheme

Uttarakhand Tourism Entrepreneur Promotion Scheme supports permanent residents and entrepreneurs of the state with financial incentives for investments between ₹1 crore and ₹5 crore in the tourism sector. This scheme is open for applications through the Invest Uttarakhand single window portal, and it helps boost local infrastructure and job creation through capital grants, interest subsidies, and stamp duty reimbursements.

Uttarakhand Paryatan Udyami Protsahan Yojana, as it is known locally, is a financial incentive scheme of the Tourism Department, Government of Uttarakhand. It was notified in 2024 and follows the objectives of the Uttarakhand Tourism Policy 2023. The scheme is built for local, small and medium tourism businesses so that outside capital does not push them out.

Uttarakhand Tourism Entrepreneur Promotion Scheme - Introduction

This scheme gives three clear benefits to eligible tourism units. A capital grant, a 100% stamp duty reimbursement and a 3% interest subsidy on term loans. All three are routed through the same single window process run under the Uttarakhand Enterprise Single Window Facilitation and Clearance Act, 2012.

Main aims of the scheme:

1. To encourage the establishment and growth of small tourism units owned by local residents and investors.
2. To create employment in the tourism sector through local investors.
3. To build high quality basic facilities in selected tourism activities in the ₹1 crore to ₹5 crore investment range.
4. To spread the benefits of tourism development, employment and infrastructure across all regions of Uttarakhand.

The size of every benefit depends on where the unit is built. The Tourism Department classifies the state into three categories, and the hill districts that are harder to reach get the larger grants.

Regional classification for incentives:

Key Information

The scheme applies only to a fixed list of identified tourism activities. Hotels and motels, resorts and tourist villages, ropeways and funiculars, spa and wellness resorts, eco lodges and residential tents, heritage hotels, cruise boats and houseboats, MICE or convention centres, museums and commercial art galleries, amusement parks, and tourism or hospitality training centres are all covered. A travel agency, a shop or a transport fleet is not covered even if the owner is a permanent resident.

Benefits

This scheme provides strong financial support to help a project succeed. Here is a breakdown of the available incentives.

Stamp Duty Reimbursement

100% of the stamp duty paid on the sale or lease deed, the project loan agreement and the mortgage or pledge is reimbursed in a lump sum after the commercial operation date. The stamp duty claim must be filed together with the capital grant application, and a separate later claim is not accepted.

Capital Grant Structure

The grant depends on the district category of the project. Every eligible unit receives a base amount of ₹33,00,000 plus a percentage of the permissible capital investment above ₹1 crore.

Permissible capital investment covers the structure and building, plant, machinery and equipment, fixtures, furniture and fittings, and related installation expenses. It does not cover land and land development, pre-construction expenses, consultancy fees, capitalised interest and working capital.

Interest Subsidy

A 3% subsidy is given on term loans from notified banks, financial institutions, state cooperative banks or regional rural banks. It runs for a maximum of 3 years from the commercial operation date, capped at ₹4,00,000 a year in Category A, ₹5,00,000 in Category B and ₹6,00,000 in Category C.

Eligibility

To qualify for Uttarakhand Tourism Entrepreneur Promotion Scheme, make sure the following points are met.

1. You are a permanent resident or entrepreneur of Uttarakhand.
2. Your total project investment falls strictly between ₹1 crore and ₹5 crore.
3. Your legal entity, like a partnership, LLP or private limited company, is owned exclusively by Uttarakhand residents.
4. Your land is fully owned, or you hold a lease with more than 10 years remaining.
5. You have taken in-principle approval through the Common Application Form (CAF) on the single window portal before setting up the unit.
6. Your business commits to hiring at least 70% permanent local staff.
7. Your unit is registered with the State Goods and Services Tax Department.

A unit cannot apply if the project cost is below ₹1 crore or above ₹5 crore, if the activity is not on the identified list, if construction started before in-principle approval, or if an identical benefit is already being drawn under another scheme.

Application Process

The application is completed online through the Invest Uttarakhand portal. Claims for a financial year must be filed within 150 days of the close of that financial year, and the portal stays open all year.

Online Application Steps

STEP 1 - Go to the Invest Uttarakhand Portal and click on Login as in the top right corner, then Create an account.

STEP 2 - Choose your registration type and enter your PAN number, full name, the name of the legal entity, mobile number, address, district, email and a password, then submit to complete registration.

STEP 3 - Log in with your ID and password and open the Common Application Form (CAF). Fill in the enterprise details, business category and the correct tourism activity.

STEP 4 - Upload the supporting documents and submit the CAF for in-principle approval. Do this before you begin construction or expansion.

STEP 5 - Obtain the pre-construction clearances, build the unit, complete post-construction registrations and start commercial operations.

STEP 6 - File the grant claim online on the same portal using your CAF ID within 150 days of the close of the financial year, attaching the prescribed documents.

STEP 7 - Track the application on the portal. Digitally signed certificates and approvals can be downloaded once issued.

Documents

Keep the following documents ready for the application.

• Approved Common Application Form (CAF) with in-principle approval, obtained before the unit is set up.
• Sale or lease deed for the project land, with a remaining lease period of more than 10 years if leased.
• Loan agreement and mortgage or pledge deeds, needed where stamp duty is claimed on a project loan.
• GST registration certificate and GST returns, filed annually for 10 years after the commercial operation date.
• Income tax returns, shareholding details and an affidavit of commercial operation, filed every year for 10 years.
• Permanent residence certificate of Uttarakhand.

For any help, the Invest Uttarakhand helpline is +91-7618544555, available from 10:00 AM to 5:00 PM IST. The District Tourism Development Officer handles site inspection and Occupancy Certificate questions, and the Nodal Officer at the Uttarakhand Tourism Development Board looks after claim scrutiny and payment.

References

View Official Scheme Guidelines

FAQ's

What is the minimum investment for this scheme?

You must invest at least ₹1,00,00,000 in an identified tourism activity to be eligible. The upper limit is ₹5,00,00,000.

Are land costs included in the capital grant calculation?

No, the grant does not cover land and land development, pre-construction expenses, consultancy fees, capitalised interest or working capital.

Can I apply if my business is on leased land?

Yes, provided the remaining lease period is more than 10 years. Units on fully owned land also qualify.

Who sanctions the financial incentives?

The Integrated Tourism Committee chaired by the CEO of the Uttarakhand Tourism Development Board recommends the proposal, and the State Level Committee chaired by the Chief Secretary gives the final financial sanction.

What is the requirement for local employment?

Your tourism unit should provide at least 70% permanent employment to local residents of Uttarakhand. This is checked during verification.

Is there a last date to apply?

The portal is open all year. However, a claim for a financial year must be filed within 150 days of the close of that financial year.