Madhya Pradesh Tourism Policy 2025

15% – 40%
Capital Subsidy Across Project Categories
₹90 Cr
Investment Promotion Assistance (Ultra-Mega)
25 Categories
Eligible Tourism Projects
90 Years
Max Lease on Govt Land / Heritage Assets
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Objective

Why the policy exists

Madhya Pradesh is the "Tiger State", holds the highest number of National Parks and Biosphere Reserves in the country and is the only "Cheetah State" in the subcontinent — alongside two Jyotirlingas, three Shaktipeeths, Ram-linked heritage at Chitrakoot and Orchha, the Buddhist site at Sanchi, and the highest number of UNESCO World Heritage Sites of any state. The policy promotes balanced and sustainable tourism enabling socio-economic development and employment. Notified vide Order No. F TD/2/0002/2025/33 dated 18/02/2025, it runs 5 years from issuance and repeals the Tourism Policy 2016 (amended 2019). Madhya Pradesh Tourism Board is the nodal agency.

Eligible tourism projects — 25 categories

CategoryIncludes
AccommodationHotel (star, deluxe, standard); heritage hotel; motel and wayside amenities; health farm, resort and wellness resort; resort, camping site and fixed tenting units; heritage cafeteria and motel; wildlife resorts; gram stay and farm stay; bed & breakfast and home stay
MICE & AttractionsConvention centre (MICE); museum, aquarium and theme park; amusement park; golf course
Water & Adventure TourismRopeway; water park and water sports; caravan tourism; cruise tourism; house boat; adventure sports; sea plane; amphibian tourist vehicle; aero sports and training academy
Film & EntertainmentFilm studio and film-making infrastructure and equipment; sound and light show or laser show
Only capital investment finally approved by the department for the capital grant counts toward subsidy eligibility. Where a unit qualifies under more than one category, it may choose only one. PPP projects of the State are not eligible for these financial incentives, and only projects developed under notified Tourism Zones are entitled to them.
Capital Subsidy

Category-wise subsidy, minimum investment and ceilings

SchemeMin. CapitalSubsidyMax CeilingKey Condition
Heritage Hotel under proprietorship₹300 lakh15%₹200 lakh
Heritage Hotel on leased heritage asset from Tourism Dept₹1,000 lakh15%₹500 lakh
New Deluxe / 3-star or higher hotel & resort₹1,000 lakh15%₹500 lakhMin 50 lettable AC rooms
New Standard-category hotel / mini resort₹200 lakh15%₹50 lakhMin 25 AC rooms (hotel) / 10 rooms (resort)
New resort & wellness centre (Ayurvedic, yoga, naturopathy)₹500 lakh15%₹200 lakhPer GoI / state standards
Expansion of established star / deluxe / standard / heritage hotel₹100 lakh15%₹500 lakhMin 50% increase in staying capacity
500+ seater convention centre cum hotel (MICE)₹2,000 lakh15%₹1,000 lakhMain hall seating at least 500
Film studio, museum, aquarium, theme park₹100 lakh15%₹500 lakh
Adventure / water tourism, cruise, houseboat, amusement park, sound & light show, camping₹5 lakh15%₹300 lakhPermanent facility, platform, jetty or equipment
Wayside amenities (greenfield or franchise)₹25 lakh15%₹50 lakhPer Wayside Amenities Policy 2016
Infrastructure on leased heritage asset (power, water, road, sewage)₹50 lakh25%₹300 lakh
Ropeway infrastructure (inaccessible areas)₹100 lakh40%₹500 lakh
Sea plane, amphibian tourist vehicle, aero sports academy₹100 lakh25%₹1,000 lakh40% on start, 20% each in years 2–4
New deluxe and standard hotels must give 70% of jobs to Madhya Pradesh residents to remain eligible for capital subsidy (Clause 6.14).

Wildlife resorts within notified parks and reserves

CategoryForest AreasMin. CapitalMin. RoomsSubsidyMax Ceiling
AKanha, Bandhavgarh, Pench, Ratapani Tiger Reserves and adjacent parks₹5.00 crore1020%₹1.00 crore
BPanna and Satpura Tiger Reserves and adjacent parks₹3.00 crore720%₹2.00 crore
CSanjay Dubri, Kuno, Veerangana Durgavati, Madhav National Park, Gandhi Sagar and all other parks₹1.00 crore520%₹3.00 crore
Targeted Incentives

Top-ups, mega assistance and marketing support

  • Remote or ulterior new areas: additional 5% capital subsidy, minimum investment and room-count thresholds reduced to 50%, and no upper ceiling on the subsidy amount.
  • Renovation and modernisation: an existing standard hotel or mini resort upgrading to deluxe (min 50 rooms) or resort (min 20 rooms) needs at least ₹10 crore new investment; an existing deluxe upgrading to 4-star or above (min 75 rooms) or resort (min 25 rooms) needs at least ₹25 crore.
  • SC/ST entrepreneurs: additional 5% capital subsidy for 100%-owned tourism projects.
  • Electric cruises: additional 5% capital grant on approved project cost.
  • Hot air balloon operations: 50% capital subsidy excluding land, minimum ₹50 lakh investment, released over 5 years — 15% in year 1 on establishment, 10% each in years 2–4, 5% in year 5.
  • Golf tourism: up to 10% of Tourism-Department-allotted land may be permitted for commercial use with Empowered Committee approval.
  • Responsible tourism: 100% reimbursement up to ₹1 lakh for Eco Tourism Society of India certification; 25% subsidy up to ₹50 lakh for pollution-control mechanisms where investment exceeds ₹10 lakh.
  • Tourism marketing: 50% of stall or space cost up to ₹1 lakh for national events; 50% of cost plus economy airfare for one person up to ₹2 lakh for international events, up to 4 events a year; registered SHGs and cooperative societies in culture, food or handicraft get 100% reimbursement up to ₹1 lakh.

Large, Mega and Ultra-Mega Investment Promotion Assistance

CategoryMin. CapitalMin. Employment (MP residents)AssistanceMax CeilingDisbursement Yr 1–4
Large₹10.00 crore or more5030%₹15 crore10% / 10% / 5% / 5%
Mega₹50.00 crore or more10030%₹30 crore10% / 10% / 5% / 5%
Ultra-Mega₹100.00 crore or more20030%₹90 crore10% / 10% / 5% / 5%
A unit claiming Investment Promotion Assistance cannot simultaneously claim capital subsidy under any other category — it is one route or the other. For heritage hotels on this route the minimum investment and employment requirement is reduced to 50% of the above. Phase-wise disbursement requires completion of Phase 1 within 2 years, Phase 2 within 3 years and the final phase within 5 years of the approved implementation timeline. Units availing subsidy must remain operational for a minimum of 3 years with annual self-declaration by 15th April; early closure triggers clawback of 80% within 1 year, 60% within 2 years and 50% within 3 years.
Land & Process

Land allotment, stamp duty and approvals

  • Government land and heritage properties are transferred free of cost to the Tourism Department, with MPTB authorised to allot them on the department's behalf.
  • Lease and licence tenure: land may be leased for 90 or 30 years, developed via a development agreement, or licensed for 5 to 30 years.
  • Reserve price: ₹10 lakh per hectare within municipal or plan areas, ₹5 lakh per hectare elsewhere; heritage building with appurtenant land carries a reserve bid price of ₹1 lakh.
  • Disposal is via open bidding; the accepted bid is payable as a lump-sum premium plus 1% of the premium annually as lease rent.
  • Ultra-Mega projects: government rural land on a 90-year lease at the prevailing collector guideline rate or the policy reserve price, whichever is higher, at 1% annual lease rent increased sixfold every 30 years, allotted first-come-first-served with Empowered Committee approval.
  • Heritage properties carry a 5-year project-establishment timeline, extendable by 2 years on justified grounds.
  • New heritage hotel projects are exempt from registration fee and stamp duty on the built-up area and up to 1 hectare of appurtenant land; beyond that, duty is paid and later reimbursed after project commencement. No registration or stamp duty is payable on government or Tourism Department land given on lease or licence for a tourism project.

Ease of doing business — Public Service Guarantee Act timelines

PermissionDepartmentTime Limit
Building permissionUrban bodies / Gram Panchayat / Forest Dept45 days
Land or property registrationRegistration & Stamp / Commercial Tax1 day
Electricity connectionMP Electricity Distribution Company7 days
Water supply connectionUrban Housing & Development Authority / Gram Panchayat15 days
Electrical work or drawing approvalEnergy Dept, Chief Electrical Inspector7 days
Gumasta (trade licence registration)Labour Service Portal1 day
Trade licenceUrban bodies30 days
Land or archaeological NOCMP Nuzul, Tourism / Revenue / Archaeology30 days
Land-use change or diversion for tourismNagar Tatha Gram Nivesh Adhiniyam 1973 / MP Land Revenue Code 195915 days
GST registrationDept of Revenue, GoI1 day
ESI registrationMinistry of Labour & Employment, GoI3 days
Eligible units have a one-year window to apply for capital subsidy from commencement of operations. The Empowered Committee, chaired by the Chief Secretary with the Managing Director of MPTB as Member Secretary, resolves clarifications and disputes with final and binding decisions, and may approve customised incentive packages beyond the policy's standard provisions. Source: MP Tourism Policy 2025, Order No. F TD/2/0002/2025/33 dated 18/02/2025. Where there is any discrepancy, the notified Hindi version prevails.