MP Tourism Policy 2016, (Amended 2019)
MP Tourism Policy 2016, (Amended 2019)
Objectives of the Policy
The policy aims at balanced and sustainable tourism which enables socio-economic development and establishes Madhya Pradesh as a destination that provides a complete tourism experience. The policy defines tourism project, and the eligible projects can avail incentives under this policy.
Operating Period of the Policy
The Policy is valid from 2016 to 2024
Incentives under the Policy
- For the allotment of land/heritage assets for establishing tourism projects, fixed reserve price for different areas is as follows:
- INR 5 lakh per hectare for rural areas,
- INR 10 lakh per hectare for urban areas, and
- INR 1 lakh per property for heritage sites.
- Additionally, for Ultra Mega Projects with investments exceeding INR 100 Crore, direct allotment of government land is available.
- The annual lease rent payable would be 1% and the duration of the lease would be for 90 years.
- To encourage investment, the policy offers reimbursement of stamp duty and registration charges and permits mortgaging of leased properties. Financial incentives can be claimed through an online application process.
Tourism projects under this policy also qualify for capital investment subsidies. The subsidy amount will be determined based on the nature of the activity and the capital investment, as outlined below:
| Sl. No. | Subsidy Scheme | Minimum Project Expenditure (INR in Lac) | Percentage of Subsidy against Fixed Capital Investment | Maximum ceiling of Subsidy (INR in lac) |
| 1. | Capital Investment subsidy – Heritage Hotel | 300 | 15% | 200 |
| 2. | Capital Investment subsidy – Heritage Hotel (On lease from Tourism Department) | 1000 | 15% | 500 |
| 3. | Capital Investment subsidy – Deluxe/Three Star or Higher category new Hotel and Resort (Min 50 AC rooms) | 1000 | 15% | 500 |
| 4. | Capital Investment subsidy – New Hotel/Resort of Standard category (Min 25 rooms for hotel and 10 rooms for resort) | 200 | 15% | 50 |
| 5. | Capital Investment subsidy – New Resort and Wellness Centre | 500 | 15% | 200 |
| 6. | Capital Investment Subsidy – expansion of established Star/Deluxe/Standard Hotel/Resort/Heritage Hotel (min 50% increase in staying capacity) | 100 | 15% | 500 |
| 7. | Capital Investment Subsidy – Convention center cum Hotel under MICE (hall’s capacity >500) | 2000 | 15% | 1000 |
| 8. | Capital Investment Subsidy – Film Studio, Film making, Museum, Aquarium, Theme Park | 100 | 15% | 500 |
| 9. | Capital Investment subsidy – Adventure Tourism, Water Tourism, Water Sports, Cruise/Houseboat, Navigation infrastructure, Amusement Park, Sound and Light show, Laser show, Camping (including tents) | 25 | 15% | 300 |
| 10. | Capital Investment subsidy – Wayside Amenities under Green Field/ Franchise Model (as per Way Side Amenities Policy 2016) | 25 | 15% | 50 |
| 11. | Capital Investment subsidy – creation of infrastructure such as power supply, water supply, approach road, sewage etc on land and heritage assets obtained on lease from Tourism Department | 50 | 25% | 300 |
| 12. | Installation of Ropeway infrastructure for transport in inaccessible tourist places/ forest areas. | 100 | 40% | 500 |
| 13. | Capital subsidy for establishment of Sea Plane, Amphibian Tourist Vehicle and Aero Sports and Aero Sports Training Centre/ Academy (subsidy will be given after 1 year from date of operation) | 100 | 25% | 1000 |
- Special Incentives for wildlife resorts with minimum investment ranging from INR 1 Cr to INR 5 Cr are provided for specific category of forest area upto maximum subsidy of INR 3 Cr.
- Additional 5% Capital investment subsidy shall be given to establish Tourism Projects in distant & new ulterior areas.
- Capital subsidy to existing hotels for renovation/modernization & upgradation will be provided on a minimum investment of INR 10 Cr to INR 25 Cr.
- Investment Promotion assistance to setup Large/Mega/Ultra-mega tourism projects:
| Category of the Project | Minimum Investment (INR in Cr) | Minimum Employment (Domicile) | Percentage of Assistance | Maximum Assistance (INR in Cr) |
| Large | 10 or more | 50 | 30% | 15 |
| Mega | 50 or more | 100 | 30% | 30 |
| Ultra-mega | 100 or more | 200 | 30% | 90 |
- Subsidy for Responsible tourism
- Any unit certified by Eco Tourism Society of India shall be entitled for reimbursement of 100% investment made to obtain such certificate subject to a maximum ceiling of Rs. 1.00 lakh.
- New or existing tourism units installing Pollution Control mechanisms as per Pollution Control Board guidelines are eligible for a 25% subsidy on investments, capped at ₹50.00 lakh. The minimum investment required to qualify for this subsidy is ₹10.00 lakh.
- Tourism projects by SC/ST entrepreneurs under 100% ownership, shall be entitled for an additional 5% capital investment subsidy.
- Heritage/Large/Mega/Ultra-mega projects shall be entitled to get phase wise incentives/grant during the implementation of project as per approved implementation timeline.
- Assistance for Tourism Marketing:
- For national events, 50% financial assistance upto a max of INR 50 thousand.
- For international events, 50% financial assistance upto a max of INR 1 lakh for hiring space/stall and Air fare of 1 person in Economy Class.
- Special grant for operation of Hot Air Balloon in the form of capital subsidy of 50% on capital investment, provided minimum investment is of INR 50 lakh.
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