We are a dedicated team of experts committed to helping businesses thrive in Maharashtra's tourism sector. We provide comprehensive guidance and support to navigate the 2024 Tourism Policy and unlock its full potential for your growth.
Maharashtra Tourism Subsidy 2024
We are a dedicated team of experts committed to helping businesses thrive in Maharashtra's tourism sector. We provide comprehensive guidance and support to navigate the 2024 Tourism Policy and unlock its full potential for your growth.
To boost tourism in Maharashtra, the Government has introduced a range of fiscal and non-fiscal incentives under the Tourism Policy 2024. These incentives are designed to attract investment and promote diverse tourism sectors across the state.
Fiscal Incentives and Subsidies :
1. Capital Incentives
All eligible tourism units as defined in this policy would be eligible for capital investment incentive as per table below:
| Category | Type of Unit | Incentives |
|---|---|---|
| Accommodations (A) | Hotels / Motels / Youth Hostels/Youth Clubs Resorts / Log Huts / Cottages | 20% of the eligible capital investment or INR 20 crore whatever is less |
| Accommodations (B) | Serviced Apartments, Tourist Villas, Time-Sharing Resorts, Agro/ Rural/ Eco tourism units, Homestays/ Bed & Breakfast/ Vocational Rental Homes/ Tented Accommodation/ Tourist Apartments/ Bamboo Huts/Tree House/ Mud Cottages, Cruise boats / Yachts / House boats for tourist. | 15% of the eligible capital investment or INR 15 crore whatever is less |
| Food & Beverages | Wayside Amenities, Restaurants / Food kiosks or Food Courts at Tourist destinations/ Beach Shacks/Tents/Glassy Pods etc. with Scientific Waste Management facilities. | 15% of the eligible capital investment or INR 15 crore whatever is less |
| Travel & Tourism | MICE or Convention Centres, Exhibition Spaces, Wellness Centres. Tourism or Hospitality Training Centres / Hotel Management Institutes/Tourist facilitation centres etc. | 15% of the eligible capital investment or INR 15 crore whatever is less |
| Entertainment & Recreation | Ropeways / Cable Cars, Amusement Parks / Theme Parks/Adventure tourism units or parks, Golf Course, Caravan & Caravan Park, Heli Tourism projects, Unity Malls, AR-VR Zones, 7 D and above Experience, Global Tourism Village, Art and Cultural Centre etc., Centre / Amphitheatres / Theatres / Art Galleries/Viewing Gallery, Retail Zones such as shopping malls / Multiplex / Video Game Zones (only if its part of any other Eligible Tourism Unit) | 15% of the eligible capital investment or INR 15 crore whatever is less |
| Other Tourism Units | Handloom/Handicraft shops, Development of Adventure Tourism Landing Sites, Development of Hospitality Parks, E-Vehicles for Tourist, Restoration / conservation of Historical/Heritage structures/Accommodations/Buildings used as tourist attractions. | 15% of the eligible capital investment or INR 10 Lakhs whatever is less |
| Ultra Mega Project Unit | 10% of the eligible capital investment or INR 25 cr.whatever is less. | |
| Unit Section & Eligibility Period (in years) | A (5) | B (7) | C (10) | STZ/STD (10) | Ultra Mega project unit (15) |
|---|---|---|---|---|---|
| SGST reimbursement | 50% of SGST on net paid | 75% of SGST on net paid | 100% of SGST on net paid | 100% of SGST on net paid | 100% of SGST on net paid |
| Electricity duty Exemption | 50% | 75% | 100% | 100% | 100% |
| Interest subventions | Upto 5% Interest subventions on Loan of upto INR 5 Crore. Ceiling on total interest subventions shall be maximum INR 20 Lakhs within the given eligible period | Up to 5% Interest sub ventions on Loan of upto INR 10 Crore. Ceiling on total interest subventions shall be INR 25 Lakhs of total interest paid within the eligible period | Up to 5% Interest subventions on Loan of upto INR 15 Crore. Ceiling on total interest subventions shall be 30 Lakhs of total interest paid within the eligible period | Up to 5% Interest subventions on Loan of upto INR 20 Crore. Ceiling on total interest subventions shall be INR 50 Lakhs within the given eligible period | Up to 5% Interest subventions on Loan of upto INR 25 Crore. Ceiling on total interest subventions shall be INR 75 Lakhs within the given eligible period |
| Quality certification, Travel for Life Registration & Certification etc., incentives | Reimbursement offered up 100% or Rs.2.00 lakh for National Certificationand Rs.10.00 lakh for International Certification. a. Applicants shall be eligible for costs associated with qualitycertification as below : Cost of certification (registration, application fees and otherpayments to certifying authority) Cost of association consulting, limited to 50% of cost of certification Only quality certifications recognized by the Department MoT shallbe eligible. Reimbursement shall be disbursed upon submission of proof ofobtaining certification & its cross verification. | ||||
| Sustainability Initiatives Incentive(refer note no. 11 below) | Terms : Maximum percentage of investment in capital cost of implementing thesustainability initiatives Ceiling on reimbursement per project |
Incentive : Upto25% Up to INR 25 Lakhs or actual GST paid cost whatever is less |
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| Stamp duty and Registration charges exemption | 50% | 75% | 100% | 100% | 100% |
| Stamp duty and Registration charges exemption | Sale / Lease deeds executed in respect of purchase / lease of land/ built-uparea for a tourism project, provided that the sale deed, lease deed is entered into during the period of thePolicy. MortgageandhypothecationforundertakingatourismprojectduringthePeriodofthePolicy. | ||||
| Unit Section & Eligibility Period (in years) | A (5) | B (5) | C (7) | STZ/STD (7) | |
|---|---|---|---|---|---|
| SGST reimbursement | 50% of SGST on net paid | 75% of SGST on net paid | 100% of SGST on net paid | 100% of SGST on net paid | |
| Electricity duty Exemption | 50% | 75% | 100% | 100% | |
| Electricity Tariff (Difference between commercial tariff and industrial tariff) | 50% | 75% | 100% | 100% | |
| Interest subventions | Upto 5% Interest subventions on Loan of upto INR 5 Crore. Ceiling on total interest subventions shall be maximum INR 20 Lakhs within the given eligible period | Up to 5% Interest sub ventions on Loan of upto INR 10 Crore. Ceiling on total interest subventions shall be INR 25 Lakhs of total interest paid within the eligible period | Up to 5% Interest subventions on Loan of upto INR 15 Crore. Ceiling on total interest subventions shall be 30 Lakhs of total interest paid within the eligible period | Up to 5% Interest subventions on Loan of upto INR 20 Crore. Ceiling on total interest subventions shall be INR 50 Lakhs within the given eligible period | |
| Quality certification, Travel for Life Registration & Certification etc., incentives | Reimbursement offered up 100% or Maximum Rs.2.00 lakh for NationalCertification and Rs.10.00 lakh for international Certification. a. Applicants shall be eligible for costs associated with qualitycertification as below : - Cost of certification (registration, application fees and other paymentsto certifying authority) |
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| Sustainability Initiatives Incentive(refer note no. 11 below) | Terms : Maximum percentage of investment in capital cost of implementing thesustainability initiatives Ceiling on reimbursement per project |
Incentive : Upto25% Up to INR 25 Lakhs or actual GST paid cost whatever is less |
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| Stamp duty and Registration charges exemption | 50% | 75% | 100% | 100% | |
| Stamp duty and Registration charges exemption | Sale / Lease deeds executed in respect of purchase / lease of land/ built-uparea for a tourism project, provided that the sale deed, lease deed is entered into during the period of thePolicy. MortgageandhypothecationforundertakingatourismprojectduringthePeriodofthePolicy. | ||||
Following are the other tourism units eligible for financial incentives-
Adventure Tourism Units (Air, Land & Water based units), Agro Tourism/ Rural Tourism/Eco Tourism, Beach Shacks, Caravan & Caravan Park, Home Stay/Bed & Breakfast/Vacation Rental Homes/ Tented Accommodation / Tourist Apartments, Other units as mentioned in the para indicating eligible units in this chapter.
| Unit Section & Eligibility Period (in years) | A (3) | B (3) | C (5) | STZ/STD (5) |
|---|---|---|---|---|
| SGST reimbursement | 50% of SGST on net paid | 75% of SGST on net paid | 100% of SGST on net paid | 100% of SGST on net paid |
| Electricity duty Exemption | 50% | 75% | 100% | 100% |
| Electricity Tariff (Difference between commercial tariff and industrial tariff) | 50% | 75% | 100% | 100% |
| Interest subventions | Up to 5% Interest subventions onLoan of up to INR 2 Crores. Ceilingon total interest subventions shallbe INR 05 Lakhs | Up to 5% Interest subventions on Loan of up to INR 2 Crore. Ceiling on total interest subventions shall be INR 05 Lakhs | Up to 5% Interest subventions on Loan of up to INR 2 Crore. Ceiling on total interest subventions shall be INR 10 Lakhs | Up to 5% Interest subventions on Loan of up to INR 2 Crore. Ceiling on total interest subventions shall be INR 10Lakhs |
| Stamp duty and Registration charges exemption | 50% | 75% | 100% | 100% |
| Stamp duty and Registration charges exemption | Sale / Lease deeds executed in respect of purchase / lease of land/ built-uparea for a tourism project, provided that the sale deed, lease deed is entered into during the period of thePolicy. MortgageandhypothecationforundertakingatourismprojectduringthePeriodofthePolicy. | |||
| Above incentives shall not exceed to eligible Fixed capital investment of the project,within the given eligible period whichever is earlier. Eligible units should register with Directorate of Tourism and Ministry of Tourism. Also, use of Booking platform of DoT is mandatory, if available. For availing of incentives, registered units have to apply for eligibility certificate toDirectorate of Tourism. |
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Notes-
Under the Maharashtra Tourism Policy 2024, several guidelines and conditions apply to the eligibility and disbursement of incentives. Below is a summary of the key points to ensure a clear understanding of how the incentives are administered:
1. Capital Incentive Disbursement
Payment Schedule: The Capital Incentive will be paid in five equal annual installments, beginning from the Commercial Operation Date (COD) and ending at the end of each year.
Eligibility for Investment: Only investments made in the three years prior to the COD are eligible for this incentive.
2. Eligibility Criteria for Tourism Units
Investment and Permits: To qualify for incentives, tourism units must have made their first investment (purchase or work order) or received their first disbursement of a term loan or development/construction permission on or after the notification date of this policy.
Commercial Operations: New or expansion projects must commence commercial operations and acquire fixed assets at the site, paying for them within the permissible investment period, which is four years prior to the COD.
3. Extension of Benefits
Previous Policy Extension: Projects initiated under the Tourism Policy 2016 that have not yet commenced commercial operations or received occupancy certificates will automatically transition to the Tourism Policy 2024 and receive benefits as per the new policy’s provisions.
4. Maximum Incentive Disbursement
Cap on Disbursement: The maximum incentive disbursement per year is capped at the Eligible Capital Investment divided by the eligibility period. Incentives are payable to the extent of the eligible capital investment or eligibility period, whichever comes first. No extensions will be permitted beyond this limit.
5. Interest Subventions
Applicability: Interest Subventions are applicable only on term loans.
6. Eligibility for Capital Incentives
Registration: Tourism units that have obtained or applied for a provisional registration certificate under Tourism Policy 2024 will be eligible for capital incentives.
7. Sustainability Initiatives Incentive
Eligible units may also receive incentives for implementing various sustainability measures, including:
Rainwater Harvesting: Installation of rainwater harvesting systems.
Water Body Restoration: Restoring and de-silting defunct water bodies on the premises.
Eco-System Based Sewage Systems: Installation of mechanized eco-system based systems for sewage cleaning and zero liquid discharge solutions.
Renewable Energy: Installation of solar PV panels, solar wind hybrids, mini wind turbines, solar water pumps, solar lights, heaters, and cooking systems.
Electric Vehicles: Use of electric vehicles for internal transport and EV buses for external transport.
Wastewater Treatment: Installation of advanced wastewater treatment and recycling systems, such as Activated Sludge Process (ASP), Membrane Bio-Reactors (MBR), Reverse Osmosis (RO), and ecosystem-based treatments.
Smart Solutions: Implementation of smart solutions/IoT for water and wastewater management to reduce dependency on manpower and enhance business continuity.
Organic Waste Conversion: Installation of onsite organic waste converters.
Pollution Control: Installation of pollution control devices (PCD).
Note:
A. Tour Operators/Agents/DMCs should register online declaring their intent and/tentative tour circuits, number of tourist (Male/Female) etc. on DoT portal or onlinesystem. Prior to commencement of tour
B. Booking or planning should be through DoT portal for availing the benefits or the method as developed by DoT
C. Providing Data of the tourists to the Directorate will be mandatory.
D. GST Bills of Maharashtra State will only be acceptedcalculate the turnover done in Maharashtra State, wherever is required.
E. Final bill/application should be certified by Chartered Accountant (CA)
F. Bills will be reimbursed on quarterly basis of the financial year.
G. Wedding Destinations list will be published by DoT in consultation with stakeholders.
H. The Directorate of Tourism will approve basket of incentives to all projects within the policy norms and guidelines.
| Sr. No | Participation in | Quantum of financial assistance |
|---|---|---|
| 1. | Tourism Event with in Maharashtra | 50% of cost of rental of stall/ space at the event or INR 2 Lakh, which ever is lower |
| 2. | Tourism Event outside Maharashtra | 50% of cost of rental of stall/ space at the event or INR 3 Lakh, which ever is lower |
| 3. | International Tourism Event out side India | 50% of cost of rental of stall/ space at the event or INR 5 Lakh, which ever is lower |
Firms promoting Maharashtra's tourism products and offerings at events are eligible for assistance on a first-come, first-served basis. A maximum of 5 national (within and outside Maharashtra) and 5 international participations per year will be supported. The assistance, provided as reimbursement, is managed by the Directorate of Tourism.
The State Government will publish a 5-year calendar with fixed dates for major and minor sponsored tourism events. This calendar aims to promote tourist destinations and highlight both tangible and intangible heritage of Maharashtra.
| Sr. No | Category of Fair | Quantum of financial assistance |
|---|---|---|
| 1. | Major Fair | INR 10 lakhs per year per organizer |
| 2. | Minor Fair | INR 5 lakhs per year per organizer |
| 3. | List of major fairs would be issued by Directorate of Tourism, Maharashtra. Incentive would be provided to max. 3 events per year per organizer. | |
A one-time grant of INR 25,000 will be provided for one year to youth clubs within government and aided educational institutions (e.g., GICs, GGICs, Kendriya Vidyalayas, ITIs) for tourism-related activities. This funding supports organizing tour trips and implementing tourism activities for children, as per the government resolution dated 18th July 2023. Financial assistance will be managed by the designated agency under the YUVA Tourism Policy
| Types of Tourism awards | District Level | Division Level | State Level | Awardee |
|---|---|---|---|---|
| Best Tourism Village | ---- | INR 5 Cr | INR 10 Cr | Collector, Divisional Commissioner, Local Self Government |
| Best Homestay | INR.25,000/- | INR.50,000/- | INR 1 Lakh | Homestay |
| Best Agro Tourism units | INR.25,000/- | INR.50,000/- | INR 1 Lakh | Agro Tourism Unit |
| Note: Amount received as award for best tourism village shall utilized for development of concerned best tourism village by Directorate of Tourism with Local Self- Government jointly | ||||
| Sr. No. | Item | Incentive |
|---|---|---|
| 1. | Hospitability unit which will send its employees, tour guides etc. for Hospitability training through reputed accredited Institute/College etc. | Reimbursement of 75% of the cost of fees paid for Short/Medium term course/training or INR 12,000, whichever is less |
| 2. | Hospitability units which will establish affiliation with Home stays or its Cluster, Tourist villas, Agro Tourism units for its quality improvement, skilling of owner of such affiliated units, Hand holding, training etc. | The two parties will sign MoU and will receive SGST reimbursement forthe turnover achieved through the MoU. |
Tourism Courses: Individuals employed by registered hoteliers or tour operators can avail of 100% of the course fee or a maximum of ₹12,500 (whichever is less) for tourism-related courses, including foreign language skills. Up to 600 individuals can benefit per year. Each person can claim this incentive only once for courses lasting 15 days or more.
Tourist Guides: Guides near tourist areas, registered with the Directorate of Tourism and holding relevant certificates, can receive a monthly remuneration of ₹7,500 for three months. Up to 100 guides per division can benefit, subject to completion of at least 10 trips per month and recommendation from a recognized association.
Financial Support: Up to ₹10 lakhs will be provided annually to support up to 5 research proposals related to tourism or hospitality, selected by the Principal Secretary Tourism Committee. Research topics will be decided based on industry needs and relevance.
Events Support: An annual incentive of up to ₹10 lakhs is available for organizing national and international tourism events that utilize digital platforms and new technologies. Only one such incentive is allowed per financial year. Digital Content Production: Registered tour and travel operators can receive a one-time financial incentive of 25% of production costs, up to ₹10 lakhs, for creating digital publicity material, including audio/video guides and mobile applications. This is limited to 10 entities per year.
Conservation Incentive: A one-time grant of up to ₹5 lakhs will be provided to individuals or groups involved in conserving and promoting endangered indigenous art, music, crafts, and cuisine within 50 km of major tourist destinations. Selection is based on registration with the Directorate of Tourism.
Innovation Awards: ₹50,000 will be awarded to 10 innovative tourism projects implemented in a unique manner within the state.
Disability Incentive: Tourism projects employing more than 5 differently-abled workers will receive ₹1,500 per month per worker.
Certification Incentive: The first 10 projects meeting Sustainable Tourism criteria set by the Union Ministry of Tourism will receive up to ₹10 lakhs for certification expenses. Preference is given to projects certified by organizations like GRIHA, IGBC, or LEED.
Recognition: Agri-tourism businesses, including activities like goat rearing, dairying, and bee-keeping, are recognized as agri-businesses.
Licensing: Agri-tourism licenses are valid for 10 years upon verification by relevant authorities.
Training: The Directorate of Tourism will support skill development and training for agri-tourism.
Sales: Farmers can sell agricultural produce, local products, and handicrafts to tourists.
Electricity Rates: Domestic rates apply for electricity used in agri-tourism homestays.
Accommodation: Various types of accommodations, such as tents, tree houses, and eco houses, are permitted.
License Exemption: No non-agricultural license is required for agri-tourism, though activities must be reported to the local revenue department.
Long Lease Requirement: Wellness tourism projects are eligible for incentives if they have a long lease agreement (minimum 10 years) with a farmer.
Vehicle Registration: Caravans, camper trucks, and vans used for tourism must be registered with the State Transport Commissioner.
Parking Permits: Local authorities will permit parking in public areas designated for caravans.
Tourist Vehicle Status: Caravans will be given tourist vehicle status.
Promotion: Maharashtra Tourism will promote caravan tourism through social media and fam tours.
Registration: All caravan holders must register with the Directorate of Tourism.
Tax Exemption: Full exemption from non-agricultural tax and permits for tourism projects.
Development Charges: Exempted for tourism/hospitality components.
License Renewal: Licenses and permits required for tourism projects will be renewed every 5 years instead of annually.
Linkage: Tourism units can access incentives linked to the Package Scheme of Incentives, 2019, or its modifications.
Industry Status: All tourism projects will be considered “Industry” for benefits available to industrial projects.
Infrastructure Provision: Priority will be given to providing essential infrastructure like roads, water, and electricity connections for tourism units.
Electricity Access: Tourism units can obtain power through open access.
Clearances: Environment and fire clearances will be facilitated within 1 month for applicable tourism units.
FSI Limits: Additional Floor Space Index (FSI) will be provided based on road width and location. Premiums may apply, with allowances for payment in installments.
| Sr. No. | Minimum Road Width | Maximum Permissible FSIGreater Mumbai Region | Maximum Permissible FSI Rest of Maharashtra |
|---|---|---|---|
| 1. | 12 m | Up to 3 | Up to 3 |
| 2. | 18 m | Up to 4 | Up to 3.5 |
| 3. | 18 m | Up to 5 | Up to 4 |
FSI Limits: Tourism units and hospitality parks can avail additional FSI based on road width, with higher limits applicable as per local DCR norms. However, this excludes Agriculture Zones, NDZ, or any special zones where the prevailing Development Control Regulations (DCR) apply.
Premium for Additional FSI: In Brihanmumbai Municipal Corporation areas, additional FSI is available at a 50% premium of the prevailing rate as per the Development Control and Promotion Regulations (DCPR).
In rest of Maharashtra, regions like Vidarbha, Marathwada, Dhule, Nagpur, Ratnagiri, and Sindhudurg will have no premium charges for additional FSI. Other regions will have a 50% premium rate based on Unified Development Control and Promotion Rules (UDCPR).
Central Business Districts (CBD): In declared CBD areas, a 50% premium of the existing rate will be charged for additional FSI.
Payment in Instalments: Developers are allowed to pay the premium, development, and ancillary charges for the additional FSI in instalments.
Exemptions from FSI: Activities like basement parking, storage, and space used for DG set installations are exempt from FSI calculations
Building Code: Relaxations in parking norms, building height, and other parameters will align with the National Building Code.
Recreational Use: Hotels over 15 meters in height may include a recreational floor up to 4.5 meters high, open on all sides, not counted in FSI.
Land Use: Mixed land use is allowed, but incentives are limited to areas and assets used specifically for tourism.