Launched in 2004, the scheme “Grant of Financial Incentives for Hotels, Resorts, and Tourism Projects” by the Department of Industrial Development (Tourism), Government of Puducherry, aims to encourage private entrepreneurs in the field of tourism by providing financial incentives for the development of hotels, resorts, heritage hotels, and other tourism-related projects.

Benefits

Capital Grant for Star-Classified Hotels:

• One-star: ₹2,00,000/- per room, max ₹30,00,000/-.
• Two-star: ₹3,00,000/- per room, max ₹75,00,000/-.
• Three-star: ₹3,00,000/- per room, max ₹1,00,00,000/-.

Capital Grant for Heritage Hotels:

• ₹3,00,000/- per room, max ₹75,00,000/-. (Must be a listed heritage building).

Capital Subsidy for Higher-Category Projects:

• 25% of capital investment, max ₹1,00,00,000/- for projects above three-star or major infrastructure (water parks, marinas, etc.).

Service Apartments:

• ‘Silver’ category: ₹1,00,000/- per apartment, max ₹6,00,000/-.
• ‘Gold’ category: ₹2,00,000/- per apartment, max ₹12,00,000/-.

Eligibility

• Applies to star-classified hotels/resorts and tourism projects commissioned from 2005 onwards.
• Project must be in continuous commercial operation.
• Applicant must have invested in and developed the property.
• Must have star/heritage classification from the Ministry of Tourism, Govt of India.
• Must not have availed other capital subsidies from State/Central government.
• Must continue operation for at least 8 years.

Application Process

Offline

• Step 1: Print the application form and fill mandatory fields.
• Step 2: Submit the form and documents to the Department of Industrial Development (Tourism).
• Step 3: Applications are reviewed by a multi-departmental committee.
• Step 4: Approved incentives are released to the financial institution (if loan exists) or the applicant.

Documents Required

• Detailed project report (ownership, design, financial model, audits, IT returns).
• Approval and occupancy certificate from the Planning Authority.
• Certifications from Fire Service, Municipality/PWD, and Electricity departments.
• Star/Heritage Classification certificate.
• Undertaking on ₹50/- stamp paper.