Flat 15% rate across categories
Madhya Pradesh Tourism Policy 2025 applies a uniform 15% capital investment subsidy rate across eligible hotel categories, with maximum subsidy caps and minimum FCI thresholds varying by classification. This simplicity aids feasibility modelling compared to multi-option election states.
Units receiving capital subsidy must operate for a minimum 3 years from disbursement — early closure triggers pro-rata clawback of incentives.
Category thresholds and caps
| Category | Min. rooms | Min. FCI | Max. subsidy (15%) |
|---|---|---|---|
| Standard hotel | 25 AC rooms | ₹2 Cr | ₹50 lakh |
| Deluxe / 3-star+ | 50 AC rooms | ₹10 Cr | ₹5 Cr |
| Resort / wellness | 10 rooms | ₹5 Cr | ₹2 Cr |
| Heritage hotel | Heritage asset | ₹3 Cr | ₹2 Cr |
| MICE & convention | 500+ seater + hotel | ₹20 Cr | Per policy cap |
CategoryStandard hotel
Min. rooms25 AC rooms
Min. FCI₹2 Cr
Max. subsidy (15%)₹50 lakh
CategoryDeluxe / 3-star+
Min. rooms50 AC rooms
Min. FCI₹10 Cr
Max. subsidy (15%)₹5 Cr
CategoryResort / wellness
Min. rooms10 rooms
Min. FCI₹5 Cr
Max. subsidy (15%)₹2 Cr
CategoryHeritage hotel
Min. roomsHeritage asset
Min. FCI₹3 Cr
Max. subsidy (15%)₹2 Cr
CategoryMICE & convention
Min. rooms500+ seater + hotel
Min. FCI₹20 Cr
Max. subsidy (15%)Per policy cap
Application via Invest MP
- Register on invest.mp.gov.in with tourism project classification
- Submit DPR with FCI breakdown and room count by category
- Obtain Tourism Investment Promotion Cell approval letters
- Achieve COD and MoT certification where required
- File online subsidy claim with CA certification and 3-year undertaking
City guides
Indore hotel guide · Bhopal hotel guide · Heritage hotel subsidy · How to apply — MP
More Madhya Pradesh incentive guides
Mega project grants · Heritage hotel subsidy · Invest MP registration · Stamp duty reimbursement