The State Government has fixed Rs1.50 crore as maximum subsidy of converting private buildings in heritage hotels and running them. As per Madhya Pradesh Tourism Policy, if an investor wishes to convert privately owned building to heritage hotel, then 35 per cent of capital investment on it or Rs1.50 crore, whichever is less, will be payable excluding value of land.
According to the policy, subsidy will be paid only when investor completes one year of running heritage hotel and the hotel is recognised by HRACC (Hotel and Restaurants Approval and Classification Committee). Capital expenditure will be assessed by a committee comprising officers of State Archaeology Department and Tourism Corporation. Technical guidance will be provided free of cost to owners of heritage properties regarding heritage tourism by Tourism Department.