Policy

MTP 2024 vs Tourism Policy 2016 — What Changed for Hotel Developers

Side-by-side comparison of Maharashtra Tourism Policy 2024 and the 2016 policy. New incentive rates, zone changes, FSI rules, eligibility windows, and transition provisions for hotel projects.

Hotel Subsidy Solutions10 February 20259 min

The Maharashtra Tourism Policy 2024 (MTP 2024), notified on 18 July 2024, replaces the Tourism Policy 2016 for all new projects. If you are planning a hotel, resort, or homestay, understanding what changed is critical — the incentive structure, zone classification, and compliance requirements are materially different.

Key differences at a glance

AreaPolicy 2016MTP 2024
Policy validityExpired / superseded18 July 2024 – 17 July 2034 (10 years)
Capital subsidy (hotels)Varied by category20% of FCI, cap ₹20 Cr
Stamp duty exemptionLimited zones50% / 75% / 100% by Zone A/B/C/STZ
SGST reimbursementZone-based50% / 75% / 100% for 5–15 years
FSI approachLimited additional FSIRoad-width based up to 5.0 + premium concessions
Mega project thresholdsDifferent slabsZone A: ₹300 Cr, Zone B: ₹150 Cr, Zone C: ₹100 Cr
Ultra-Mega categoryNot defined₹500 Cr FCI + 800 jobs (statewide)
Homestay incentivesBasic15% capital subsidy, cap ₹15 Cr under Category B
Single WindowPartial10 permits streamlined (GR 2 Nov 2020 reinforced)
Travel for LiFENot requiredMandatory certification for final registration
AreaPolicy validity
Policy 2016Expired / superseded
MTP 202418 July 2024 – 17 July 2034 (10 years)
AreaCapital subsidy (hotels)
Policy 2016Varied by category
MTP 202420% of FCI, cap ₹20 Cr
AreaStamp duty exemption
Policy 2016Limited zones
MTP 202450% / 75% / 100% by Zone A/B/C/STZ
AreaSGST reimbursement
Policy 2016Zone-based
MTP 202450% / 75% / 100% for 5–15 years
AreaFSI approach
Policy 2016Limited additional FSI
MTP 2024Road-width based up to 5.0 + premium concessions
AreaMega project thresholds
Policy 2016Different slabs
MTP 2024Zone A: ₹300 Cr, Zone B: ₹150 Cr, Zone C: ₹100 Cr
AreaUltra-Mega category
Policy 2016Not defined
MTP 2024₹500 Cr FCI + 800 jobs (statewide)
AreaHomestay incentives
Policy 2016Basic
MTP 202415% capital subsidy, cap ₹15 Cr under Category B
AreaSingle Window
Policy 2016Partial
MTP 202410 permits streamlined (GR 2 Nov 2020 reinforced)
AreaTravel for LiFE
Policy 2016Not required
MTP 2024Mandatory certification for final registration

Transition rules for existing projects

Projects initiated under Tourism Policy 2016 that have not yet commenced commercial operations automatically transition to MTP 2024 benefits. Projects that already have a Final Registration Certificate under the 2016 policy continue under their original terms. New investments or term loan disbursements on or after 18 July 2024 qualify under MTP 2024 regardless of when the entity was formed.

What hotel developers gain under MTP 2024

  • Higher capital subsidy cap — ₹20 Cr for hotels vs lower caps under 2016
  • Structured stamp duty exemption up to 100% in Zone C and STZ
  • Zero premium FSI in Vidarbha, Marathwada, and select coastal districts
  • Longer SGST eligibility — up to 15 years for Ultra-Mega projects
  • Industry status with industrial electricity tariffs
  • Non-agricultural tax and development charge exemptions

What to watch out for

  • FSI is not a blanket waiver — it is additional FSI based on road width with premium in most cities
  • Land cost is excluded from FCI for capital subsidy (included only for SGST cap calculation)
  • Capital subsidy disburses over 5 years from COD — not upfront
  • All claims require CA-certified statements and Directorate of Tourism verification

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