MPSTDC rolls out attractive offers, incentives to bolster tourism and infra

MPSTDC, in a recent presentation, has highlighted plethora of investment opportunities in the state. With capital subsidies, fast-tracking of projects and online approvals, it is making a bid to better wayside amenities on highways, besides at a aiming a serious infusion of new hotels through attractive schemes.

Microsoft Word - Document1Having ranked sixth in domestic tourist arrival, in the recent years, Madhya Pradesh is one of the most active states, on the national scale, in furthering its tourism products to larger audiences. Home to several religious, historic and wild-life destinations, its tourism potential is accentuated by several strong pegs and constant infusion of new attractions to strengthen footfalls. The state boasts of nine National Parks, five Tiger reserves and 25 sanctuaries. 

Replete with World heritage sites and other remarkable structures like Ater fort, Jai Villas palace and Rajgarh palace, the state has diverse bouquet of leisure destinations on offer, too.  With Pachmarhi, Bhopal, Shivpuri and Bhedaghat in its repertoire, MP can boast to be a three sixty degree destination. 

In continuation to its efforts, MPSTDC has recently unveiled a presentation highlighting tourism and infrastructure related investment opportunities in the state.

Adventure based sports, F&B, and different categories of hotels identified as main areas for investment

Microsoft Word - Document1The state tourism department has especially mentioned Water resorts, water sports, Water Park, way side amenities, restaurants, ropeways, resorts and hotels – budget, starred, heritage and motels – as key areas for investment and growth. Riding on the back of offerings like class archeological structures with three World Heritage sites, cultural and ethnic diversity, largest forest state – extensive waterscapes, forests and wildlife – and incentives to promote investments in tourism sector

Addressing a major concern related to development of adequate skilled manpower, the state has a MP Institute of Hospitality Training, which is patronized by MPSTDC and other training institutions across the state.

On the capital subsidy front, Heritage hotels are being provided with 35 percent exemption of capital investment excluding land cost; the maximum cap is pegged at Rs.15 million. In terms of specifics, capital subsidy for Budget Hotels, on Government land, is capped at 10 percent of capital investment and twenty percent with a maximum of Rs.5 million on capital investment on private land.  

For hotels and resorts, it ranges from 15 to 25% on capital investment expanding upon investment categories – up to Rs.7.5 million to Rs.15 million. While keeping an eye on MICE tourism, subsidy on capital investment has been increased to 25% which is capped at up to Rs.100 million. 

One of the major hurdles in attracting investment has been the lack of speedy clearances and an unending maze of paperwork. In order to speed-up clearances for tourism and infra related projects, a direct online link to has been setup, facilitating direct link to regional manager for coordination and assistance.

At a time when state governments’ are, one by one, examining the feasibility of liquor ban, latest causality being Bihar, MP government is offering a fifty percent exemption on license fee to the units given on management contract by MPSTDC.

Infrastructural push with Wayside amenities

Terming Way side amenities as an opportunity for investment, the state government’s policy allows investor to commence WSA on Brown field model where the infrastructure made by MP Tourism and will be given on lease for 30 years to run the facilities. Further, corporation has constructed WSA on National and state highways connecting tourist destinations to provide quality rest, food and amenities to tourists travelling by road.

While basic infrastructure such as kitchen, store, restaurant, toilets, wash area, reception and corridor are to be constructed on land owned by the department and these facilities are to be given to private investors to run on management contract for ten years through a transparent bidding process.

Investors also have an option of opting for a Green field/franchisee model and land will be given on thirty year lease where they are free to create infrastructure and run the facilities. As per the MPSTDC presentation, Investors are allowed to use MPT branding as designed by the CorporationIn what could substantially improve tourist experience, the state government has made a policy to develop over 200 Wayside amenities to ensure facilities for travellers. 

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