limit of maximum subsidy to investors for constructing budget hotels at religious tourism destinations has been fixed under Madhya Pradesh Tourism Policy. Under it, 10 per cent of total capital expenditure or `50 lakh on construction of hotel on department’s land bank, whichever is less, will be payable.
The State Government has decided to construct budget hotels at the State’s prominent religious tourism destinations including Datia, Amarkantak, Maheshwar, Ujjain, Omkareshwar, Chitrakoot, Orchha, Maihar, Panna, Mandla, Multai, Salkanpur and Mandleshwar.
Subsidy worth 50 per cent on upset price of departmental land will be payable to investors. Maximum limit of capital subsidy and the subsidy on upset price of departmental land will not exceed `50 lakh.
If investors construct hotel on their own land, they will be given 20 per cent subsidy or `50 lakh, whichever is less. No subsidy will be given on price of land.
Eligibility of subsidy on construction of budget hotels will accrue only when 25 or more rooms are constructed in the hotel. Besides, minimum 50 beds should be available for claiming subsidy/exemption on construction of dormitory.