MTP 2024 is not just for large hotels. Agro-tourism, homestays, B&Bs, tented accommodation, and tree houses are eligible under Accommodations Category (B) with meaningful fiscal incentives — especially in Zone C and STZ where benefits reach 100%.
Category A vs Category B — incentive comparison
| Parameter | Hotels/Resorts (Cat. A) | Homestays/Agro (Cat. B) |
|---|---|---|
| Capital subsidy rate | 20% of FCI | 15% of FCI |
| Capital subsidy cap | ₹20 Cr | ₹15 Cr |
| Min. rooms | 10 rooms | No minimum |
| Stamp duty exemption | Zone-based (50–100%) | Same zone schedule |
| SGST reimbursement | Zone-based (50–100%) | Same zone schedule |
| Industry status | Yes | Yes |
Agro-tourism specific benefits
- Farm stays, rural experiences, and agricultural learning centres eligible
- Sustainability-linked incentives up to 25% in select categories
- Non-agricultural (NA) tax exemption for tourism use conversion
- Development charge exemption for tourism components
- Electricity duty exemption following zone schedule
Best locations for agro-tourism under MTP 2024
- Nashik wine country — vineyard stays and farm experiences
- Konkan — mango orchard stays and coastal agro-tourism
- Vidarbha — cotton and orange farm tourism with zero-premium FSI
- Marathwada — heritage and rural craft tourism
- STZ-designated villages with DoT notification
Documentation tips for homestay & agro projects
Agro-tourism and homestay projects face stricter land record scrutiny. Ensure NA conversion (or permissible agricultural tourism use), local body NOC, activity mapping in the DPR, and clear room/unit count. PRC applications for homestays should specify the exact accommodation type and maximum guest capacity.
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