Hotel & Homestay Guide
Subsidies for Hotels, Resorts & Homestays
Building a hotel, eco-resort, or village homestay? The government gives up to 50% subsidy (up to ₹5 Crore), tax refunds, and loan interest help.
Homestay Scheme (Small)
Up to ₹15 Lakhs
For local homes with up to 6 guest rooms.
- • Hill areas: 50% subsidy (max ₹15L)
- • Plains: 25% subsidy (max ₹7.5L)
- • 50% bank loan interest paid by government
- • No commercial property tax for 3 years
TEPS Scheme (Adventure)
Up to ₹25 Lakhs
For river rafting, trekking camps, and tourist cabs.
- • Up to 30% grant on adventure gear
- • Covers rafting boats, safety gear, tents
- • 5% bank loan interest rebate
- • Easy bank loan support
Tourism Policy 2030 (Big)
Up to ₹5.0 Crore
For commercial hotels, luxury resorts, and yoga centers.
- • Up to 50% subsidy on building & setup
- • 100% State GST refund for 5 years
- • Zero stamp duty on land purchase in hills
- • Extra 5% bonus for green buildings
Hotel & Resort Subsidy by District
Tourism Policy 2030 Subsidies
Official Scale| Category | Districts / Locations | Capital Subsidy % | Max Cap | Interest Rebate |
|---|---|---|---|---|
| TourismCat A | High Hills: Chamoli, Uttarkashi, Pithoragarh, Rudraprayag, Champawat | 50% | Up to ₹5.0 Crore | 5% per year for 5 yrs |
| TourismCat B | Mid Hills: Tehri Garhwal, Pauri Garhwal, Almora, Bageshwar | 40% | Up to ₹3.0 Crore | 5% per year for 5 yrs |
| TourismCat C | Tourism Belts: Hill areas of Nainital & Dehradun | 30% | Up to ₹1.5 Crore | 4% per year for 5 yrs |
| TourismCat D | Plains: Haridwar, Udham Singh Nagar, Dehradun & Nainital plain areas | 20% | Up to ₹50 Lakhs | 3% per year for 5 yrs |
Notice:Hotels in hill areas (Category A & B) also get 100% State GST refunded back for the first 5 years.
Important Rule Before You Start Building:
Do not start foundation digging or construction work before registering your project with the Uttarakhand Tourism Development Board (UTDB). Any building bills paid before registration cannot be claimed under the subsidy.
Building a Hotel, Resort, or Homestay?
Get your project DPR checked by our professional subsidy advisors before spending on construction.
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