The “Grants Provisioned under Uttarakhand Tourism Policy, 2023” was introduced by the Department of Tourism, Government of Uttarakhand. It aims to promote sustainable tourism development in the state by encouraging private and institutional investment in the tourism sector through targeted financial incentives and subsidies.

Benefits

Under Uttarakhand Tourism Policy, 2023, the following grants are allowed to investors:

Capital Subsidy for Housing Projects:

• Category A – up to 25%
• Category B – up to 35%
• Category C – up to 50%

The grant will be given as per the following details:

• a) The maximum admissible capital subsidy shall be disbursed in 10 equal annual installments from the date of commencement of commercial operations, i.e., 10% of the total capital subsidy per annum; OR
• b) The subsidy amount shall be equivalent to 75% of the net State Goods and Services Tax (SGST) paid by the unit during the preceding 12 months, + applicable additional incentives, whichever is lower.

Additional Annual Incentives for Residential Projects:

• i. Incentive for Marketing and Publicity – Up to a maximum of 1% of the capital grant.
• ii. Incentive for Training and Skilling – Up to a maximum of 0.5% of the capital grant.
• iii. Interest Subsidy – Up to a maximum of 1% of the capital subsidy.
• iv. Incentive for Waste Treatment – Up to a maximum of 0.25% of the capital subsidy.
• v. Incentive for Bookings through Online Travel Agencies/Platforms Developed by the State – Up to a maximum of 0.25% of the capital grant.

Capital Grant for Development of Tourism Products and Services:

Grant of up to 100% of the capital asset, disbursed in 5 equal annual installments (20% p.a.) or 75% of net SGST, whichever is lower.

Additional Annual Incentives for Tourism Products:

• i. Incentive for Marketing and Publicity – Up to a maximum of 2% of the capital grant.
• ii. Incentive for Training and Skilling – Up to a maximum of 2% of the capital grant.
• iii. Interest Subsidy – Up to a maximum of 2% of the capital subsidy.
• iv. Booking through Online Travel Agency – Up to 1% of the capital grant.

Other Incentives:

• Turnover Linked Incentive: For operational projects not receiving capital grants (Premium units, Foreign tourist stay, MICE/Events – 1% of turnover).
• Incentive for Heli-Transport: Subsidy of ₹500 per person per leg from specific helipads.
• Reimbursement of Electricity Duty: 100% reimbursement for new eligible units.
• Reimbursement of Stamp Duty: Applicable stamp duty reimbursed in five equal installments.

Minimum Investment: Requirement for new/expansion projects ranges from ₹1 crore to ₹5 crore depending on category and location.

Eligibility

• Legitimate entities or investors meeting NIC code requirements and infrastructure standards.
• Must possess or acquire land in Uttarakhand for project execution.
• Compliance with the Operational Guidelines of Tourism Policy 2023.

Application Process

Online: https://investuttarakhand.uk.gov.in/

1. Apply for In-Principle Approval through the Single Window System.
2. Proposals up to ₹50 crore (MSME) are processed by the District Level Empowered Committee (DLEC).
3. Proposals exceeding ₹50 crore are processed by the State Level Empowered Committee (SLEC).
4. Obtain departmental clearances (land use, fire, environment, etc.) and construct the project.
5. Apply for grants within 150 days from the end of the financial year following the commencement of commercial operations.
6. Grant is transferred online to the bank account after ITC and SLEC review.

Documents Required

Applicants are required to submit the necessary documents in accordance with the guidelines specified under the Tourism Policy, 2023 via the Single Window Portal.