The scheme aims to provide Central Financial Assistance for setting up, expanding, upgrading, and replacing equipment for institutions involved in tourism and hospitality education and capacity building. Benefits include capital grants for construction and equipment.
💰A. Financial Ceilings for Projects | • Setting up a new State Institute of Hotel Management (SIHM): | ◦ Maximum Central Financial Assistance ceiling is ₹12,50,00,000/-. | ◦ Construction ceiling is ₹10,00,00,000/-. | ◦ Equipment purchase ceiling is ₹2,50,00,000/-. | ◦ Additional financial assistance for construction of Hostel Block is up to ₹4,00,00,000/-. | • Setting up a SIHM in an existing Building: | ◦ Central Financial Assistance (CFA) for the academic block construction is limited to ₹6,00,00,000/- or 75% of the construction cost, whichever is less. | ◦ Maximum financial assistance for construction of a hostel is ₹2,00,00,000/-. | ◦ Maximum financial assistance for purchase of equipment is ₹2,00,00,000/-. | • Setting up a new Food Craft Institute (FCI) by State Government/Union Territory Administration: | ◦ Over-all ceiling is ₹5,50,00,000/-. | ◦ Construction of building ceiling is ₹4,35,00,000/-. | ◦ Equipment ceiling is ₹1,15,00,000/-. | ◦ Additional financial assistance for hostel facilities is up to ₹2,00,00,000/-. | • Setting up a FCI in an existing Building: | ◦ Central Financial Assistance for the construction of the academic block is limited to ₹2,80,00,000/- or 75% of the construction cost, whichever is less. | ◦ Financial assistance for purchase of equipment is up to ₹1,15,00,000/-. | • Applied Training Centre (ATC) attached to Central IHMs: | ◦ Assistance is up to a maximum of ₹5,00,00,000/- for construction. | • Promotional Initiatives (Broad-basing for Public Sector Undertaking - PSU): | ◦ One-time Central Financial Assistance is not to exceed ₹2,40,00,000/-. | ◦ CFA for civil works is limited to ₹60,00,000/-. | ◦ CFA for Heavy & Small Equipment, Furniture & Fixtures is limited to ₹1,80,00,000/-. | B. Adjustment and Flexibility | • Inter-component adjustments of assistance ceilings (for construction of academic block, hostels, and purchase of equipment) are allowed subject to a maximum of 10%. | • Such adjustments are allowed only on a case-to-case basis as a pre-sanction dispensation, and no flexibility is allowed after the project is sanctioned. | C. Fund Disbursement and Conditions | • Funds will be released via the Central Nodal Agency (CNA), which is the National Council for Hotel Management & Catering Technology (NCHMCT). The CNA maintains a bank account in State Bank of India (SBI). The Implementing Agency (sub-agency) opens a zero-balance account in SBI and draws funds to the extent of authorization given by the Ministry on a real-time basis. | • Maximum Central Financial Assistance up to ₹10,00,000/- shall be provided immediately upon sanction of the project to meet expenditure for preparatory activities. | • First Installment: The first installment of fund, equaling 40% of the sanctioned amount, would be released after adjusting the preparatory fund of ₹10,00,000/-, once the tender process is completed. | • Subsequent Installments: The balance amount would be released in different tranches of 40% and 15%. | • Final Installment: The final installment of 5% would be released only after the completion of all civil works and submission of required documents like the completion certificate and display of credit to the Ministry. | • Release: The first installment of grant will be released only after the land is transferred in the name of the society (as stipulated) and the contract is awarded by the implementing agency. Subsequent installments will be released only after a Utilization Certificate (UC) for at least 75% of the previous installment(s) is furnished. | • Renewal/Continuation: Fresh requests for Central Financial Assistance for major maintenance/renovation (where the estimated expenditure is above ₹20,00,000/-) will only be entertained after a period of five years from the date of sanctioning of the previous grant for that purpose.