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

Expected Time of Disbursement

• The scheme applies to star-classified hotels/resorts, heritage hotels, and other tourism projects completed and commissioned from 2005 onwards.
• The project must be in continuous commercial operation.
• The applicant must have financially invested in the property and developed the project.
• The hotel/resort must have star classification or heritage classification approved by the Ministry of Tourism, Government of India.
• The project must not have availed any other capital subsidy/incentive from the Government of Puducherry or the Government of India.
• The project must continue in the same name and style for eight years from the date of release of the incentive.

• Projects that have already availed capital subsidy/incentive from the Government of Puducherry or the Government of India are not eligible.
• Demolishing a heritage building and reconstructing it as a heritage hotel is not considered eligible under the scheme.

• Detailed project report in English about the infrastructure, including ownership, structural designs, financial model, detailed estimates, audited balance sheet, and profit and loss statements from its commencement, income tax returns, and other relevant particulars.
• Approval and occupancy certificate issued by the Planning Authority of the respective regions of the Government of Puducherry with approved drawing.
• Certification of the building from the Departments of Fire Service, Municipality/Public Works, and Electricity.
• Certification of Star Classification/Heritage Classification from the Ministry of Tourism/Department of Tourism, Government of India.
• Undertaking as per the format on ₹50/- stamp paper.