What you get
Capital Grant for Star-Classified Hotels | - ₹2,00,000/- per room, subject to a maximum of ₹30,00,000/- for one-star hotels. | - ₹3,00,000/- per room, subject to a maximum of ₹75,00,000/- for two-star hotels. | - ₹3,00,000/- per room, subject to a maximum of ₹1,00,00,000/- for three-star hotels. | Capital Grant for Heritage Hotels | - ₹3,00,000/- per room, subject to a maximum of ₹75,00,000/-. | - The building must be listed in the current list of heritage buildings in Puducherry and conform to architectural and conservation guidelines. | Capital Subsidy for Higher-Category Projects | - 25% of the capital investment, subject to a maximum of ₹1,00,00,000/- for hotels/resorts with more than three-star classification and other tourism projects like water theme parks, amusement parks, yacht marinas, family entertainment centers, convention centers, and cruise tourism. | Service Apartments | - ₹1,00,000/- per apartment, subject to a maximum of ₹6,00,000/- for 'Silver' category. | - ₹2,00,000/- per apartment, subject to a maximum of ₹12,00,000/- for 'Gold' or higher category. | Mode of Disbursement | The incentive is directly released to the authorized/approved financial institutions if a loan was taken for the project. If no loan was taken, the amount is released directly to the applicant. | Expected Time of Disbursement | Priority for disbursement is based on the date of star classification/heritage classification or the date of commercial operation for other tourism projects.
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
Is there a specific time period when the project must have been completed to qualify for incentives?
Yes, the project must have been completed and commissioned, and in continuous commercial operation from the year 2005 onwards.
What is the maximum capital grant available for a one-star hotel under this scheme?
The maximum capital grant for a one-star hotel is [?]2,00,000/- per room, subject to a maximum of [?]30,00,000/-.
How much financial incentive can a two-star hotel receive per room?
A two-star hotel can receive [?]3,00,000/- per room, subject to a maximum of [?]75,00,000/-.
What is the maximum capital grant available for a three-star hotel project?
The maximum capital grant for a three-star hotel is [?]3,00,000/- per room, subject to a maximum of [?]1,00,00,000/-.
Are heritage hotels eligible for financial incentives, and what is the grant amount?
Yes, heritage hotels are eligible for [?]3,00,000/- per room, subject to a maximum of [?]75,00,000/-.
What are the conditions for heritage hotels to qualify for financial incentives?
The building must be listed in the current list of heritage buildings in Puducherry and conform to architectural and conservation guidelines.
What is the capital subsidy for tourism projects like water theme parks and amusement parks?
The capital subsidy is 25% of the investment, subject to a maximum of [?]1,00,00,000/-.
Are service apartments eligible for financial incentives under this scheme?
Yes, service apartments are eligible if they conform to the Ministry of Tourism's "Bed and Breakfast Scheme" guidelines.
What is the financial incentive for 'Silver' category service apartments?
'Silver' category service apartments can receive [?]1,00,000/- per apartment, subject to a maximum of [?]6,00,000/-.
How much incentive can 'Gold' or higher category service apartments receive?
'Gold' or higher category service apartments can receive [?]2,00,000/- per apartment, subject to a maximum of [?]12,00,000/-.
What is the requirement for service apartments to be eligible for incentives?
Service apartments must have commenced construction, completed, commissioned, and be in continuous commercial use after the date of the government order.
Can a project that has already received a capital subsidy from the government apply for this scheme?
No, projects that have already availed capital subsidy/incentive from the Government of Puducherry or India are not eligible.
What is the duration for which the project must continue after receiving the incentive?
The project must continue in the same name and style for eight years from the date of release of the incentive.
What happens if the project is sold or transferred within eight years of receiving the incentive?
If the project is sold, mortgaged, or transferred within eight years, the incentive amount may be recovered with interest and penalty.