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The Madhya Pradesh government has come up with a policy to offer incentives to private investors in historic tourist destinations and places of religious importance.
Accordingly, a lump sum grant of Rs 50 lakh will be offered to investors who establish budget hotels at tourist places and places of religious importance.
"The grant on budget hotel will be either 10 percent of the total investment or Rs 50 lakh, whichever is lower," a government official said. "The state government has identified locations like Maheshwar, Omkareshwar, Ujjain, Chitrakoot, Orchha, Maihar, Panna, Datia, Mandla, Multai, Salkanpur and Mandleshwar."
The official added that investors will be offered a 50 percent grant with a cap of Rs 50 lakh on the price of the land available with the department of tourism.
"In case the private investors have their own land they will be offered 20 percent of the total investment or Rs 50 lakh, whichever is lower, but there will be no subsidy or grant on land cost," the official said.
An investment in a budget hotel will be entitled to financial assistance, provided it has 25 or more rooms.
Similarly, three places of historic importance, namely Chanderi, Mandu and Burhanpur have been identified for creation of resorts or hotels through private investment.
The state government will offer financial assistance as grant of Rs 75 lakh or 25 percent of the total investment cost of the resort or hotel.
The assistance will be upto Rs one crore or 20 percent of the investment cost if the investment size is between Rs 3 crore and Rs 5 crore. The grant will be up to Rs 1-1.5 crore or 15% of theinvestment if it is more than Rs 5 crore.
"An investment in hotel at identified places of historic importance will be offered financial assistance if it falls under five-star category and should have minimum 20 rooms. It should be constructed in accordance with the guidelines of the Central government tourism department," the official said.
However the resort will be offered the grant if it has minimum 10 rooms.
