Hotel Subsidy Solutions15 June 20256 min
Madhya Pradesh Tourism Policy 2025 offers a flat 15% capital investment subsidy across hotel categories with caps from ₹50 lakh (standard) to ₹5 crore (deluxe/star). Applications run through invest.mp.gov.in and the Tourism Investment Promotion Cell.
Category caps at a glance
| Category | Capital cap | Minimum FCI |
|---|---|---|
| Standard hotel | ₹50 lakh | ₹2 Cr |
| Deluxe / star | ₹5 Cr | ₹10 Cr |
| Heritage hotel | ₹2 Cr | ₹3 Cr |
| Resort / wellness | ₹2 Cr | ₹5 Cr |
CategoryStandard hotel
Capital cap₹50 lakh
Minimum FCI₹2 Cr
CategoryDeluxe / star
Capital cap₹5 Cr
Minimum FCI₹10 Cr
CategoryHeritage hotel
Capital cap₹2 Cr
Minimum FCI₹3 Cr
CategoryResort / wellness
Capital cap₹2 Cr
Minimum FCI₹5 Cr
3-year operation commitment
Units receiving capital subsidy must operate for a minimum of three years from disbursement. Early closure triggers pro-rata clawback — factor this into lender and investor agreements.
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