Interest subvention for hotel projects
Gujarat Tourism Policy 2021–25 offers interest subvention of up to 5% on term loans taken for eligible tourism projects. In municipal corporation areas including Ahmedabad, Surat, Vadodara, and Rajkot, the maximum benefit is ₹25 lakh per annum for 5 years.
Interest subvention complements capital subsidy and stamp duty reimbursement — it reduces debt service during the critical ramp-up period after hotel opening.
Electricity duty exemption
Registered tourism units receive 100% exemption from electricity duty for 5 years from the date of commercial operations. For power-intensive hotels with central HVAC, kitchens, and laundry, this represents meaningful operating cost savings alongside the 5-year capital recovery window.
Benefit summary
| Benefit | Rate | Duration / cap |
|---|---|---|
| Interest subvention | Up to 5% on term loans | Max ₹25 lakh/year × 5 years (municipal corp.) |
| Electricity duty | 100% exemption | 5 years from COD |
| Mega units — luxury tax | Exemption | 7 years (mega category only) |
| Stacking | With capital & stamp duty | All benefits require Gujarat Tourism registration |
Claim checklist
- Term loan from scheduled bank or financial institution for tourism project
- Gujarat Tourism registration and MoT certification for hotel category
- Annual interest certificate from lender for subvention claims
- Electricity connection in tourism unit name — duty exemption applied via DISCOM
- Maintain commercial operations and annual compliance filings
Related guides
Capital subsidy guide · Priority destinations · Ahmedabad hotel subsidy · How to apply — Gujarat
More Gujarat incentive guides
Priority destination incentives · Stamp duty reimbursement · Capital subsidy