After granting tourism sector the status of industry, the Madhya Pradesh government has amended the tourism policy so as to make it more investor friendly. As per the new policy, 25% capital subsidy will be provided for renovation of a heritage property.

The subsidy will be provided only on completion of one year of service, that too in those cases only where the property has been awarded heritage hotel status by the HRACC (Hotel & Restaurant Classification Committee). Evaluation of subsidy will be done by a committee comprising representatives of the department of archaeology and tourism. Interestingly, technical knowhow to the owners of heritage properties shall be provided free of cost by the tourism department.

Talking to ToI, Raghavendra Singh, managing director, Madhya Pradesh Tourism Development Corporation ( MPTDC), said, "Currently, we are busy renovating heritage hotels irrespective whether they are in the private or public sector. We have got seven state-owned and 20 privately-owned heritage hotels which are undergoing renovation. Also, we have decided to provide free technical support for budget hotels."

The state will also promote construction of budget hotels at places of religious and tourist importance that are declared by the state government and offer capital subsidies. The budget hotels on land provided by MPSTDC from their land bank will be entitled to 10% capital subsidy, subject to a maximum ceiling of Rs 50 lakh.

Moreover, 50% subsidy on the upset price of land shall also be provided. Similarly, budget hotels on privately owned land will be entitled to 20% capital subsidy subject to a maximum ceiling of Rs 50 lakh. However, subsidy will be available only when the budget hotel has a minimum of 50 rooms and the tariff of each room does not exceed Rs 2000 per day.

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