Subsidy for Bhunga, Cottage & Log Hut Projects in Gujarat

🛖 Subsidy for Bhunga, Cottages, and Log Hut Tourism Projects in Gujarat

A Cultural Retreat Backed by Government Incentives

Gujarat is not just known for its temples, wildlife, and heritage sites—it is also home to iconic rural architecture, such as Bhungas, eco-friendly cottages, and wooden log huts. These unique accommodation types offer immersive experiences in nature and culture. To boost eco-rural tourism, the Gujarat Government, through the Tourism Policy 2021–25, provides attractive capital subsidies and financial incentives for investors setting up such tourism projects.

This blog provides a comprehensive guide to understand eligibility, benefits, and the application process for subsidies available to Bhunga, Cottages, and Log Hut projects in Gujarat.

🏕️ What are Bhunga, Cottage, and Log Hut Projects?

These accommodations offer rustic, nature-integrated lodging ideal for tourists seeking tranquility, local art, and rural heritage:

• Bhunga: Traditional circular mud houses of Kutch known for their climate resilience
• Cottage: Low-rise, eco-built stay options ideal for countryside and tribal zones
• Log Hut: Wooden cabins typically built in forested or hill regions for cozy, nature-focused stays

These structures promote low-impact tourism, employment in rural areas, and preservation of local architectural knowledge.

📅 Policy Period and Scope

• Tourism Policy Validity: From 1st January 2021 to 31st December 2025
• Applies to the entire state of Gujarat
• Projects must start commercial operations during the policy period
• Only new projects are eligible (not expansions)
• Project must be registered with the Commissioner of Tourism

💰 Financial Incentives for Bhunga/Cottage/Log Hut Projects

✅ 1. Capital Subsidy – 15%

📌 Eligible Capital Investment (FCI) includes civil works, interiors, furniture, green systems, electrification—not land cost.

✅ 2. Stamp Duty and Electricity Duty Benefits

• 100% Reimbursement of Stamp Duty & Registration Fees
• 100% Exemption from Electricity Duty for 5 Years

Electricity board will issue exemption approval based on first bill

✅ 3. Green Building & Sustainability Certification Support

If your tourism unit obtains any of the following certifications:

• IGBC – Indian Green Building Council
• GRIHA – Green Rating for Integrated Habitat Assessment
• LEED – International green design standard
• GSTC – Global Sustainable Tourism Council

You are eligible for:

✅ 4. Marketing & Promotion Subsidy

Participation in tourism exhibitions and travel fairs is reimbursed as:

📝 Applicable for up to 5 events during the policy period

✅ 5. Payroll Incentives for Tourist Guides

For hiring Gujarat-based tourist guides deployed at tourist locations:

📅 Apply once every year before May 31st for the previous financial year

📍 Suggested Locations for Projects

These projects are ideal in regions such as:

• Kutch (Dhordo, Hodka) – For Bhungas
• Gir Forest, Dang, Chhota Udepur – For tribal-themed cottages/log huts
• Saputara, Dangs, Ambaji Forest Belt – Nature-friendly hill stay concepts
• Coastal districts like Mandvi, Dwarka, Diu – Wooden cottages & beach stays

High Priority Tourism Centers in Gujarat include Kutch, Dwarka, Narmada, Gir-Somnath, Dang, Junagadh, Chhota Udepur, Patan, Navsari, and more.

🧭 Step-by-Step Application Process

Step 1: Prepare Project Proposal / DPR

Include design, cost estimate, FCI break-up, sustainability features, and concept.

Step 2: Register as a Tourism Unit

Apply at https://tourism.gujarat.gov.in and get project registration.

Step 3: Commence Implementation

Start construction, install amenities, and begin operations before the policy deadline.

Step 4: Claim Subsidies

Submit all documents (invoices, photographs, certifications, utility bills) within 180 days of commercial operation.

💼 Example Project: Bhunga Resort in Kutch

❓ FAQs

1. Can an existing resort convert into Bhunga and claim subsidy?

❌ No. Only new projects are eligible for capital subsidy.

1. Can I build Bhungas with modern interiors?

✅ Yes, as long as the outer architectural design reflects Bhunga style.

1. Do I need land ownership for eligibility?

✅ You must have legal rights (ownership or registered lease) to construct and operate the tourism unit.

📞 Need Expert Help?

Book your consultation At Adroit Corporation, we help you:

• Prepare your business model and DPR
• Select the right loan structure
• Get the subsidy application right
• Track and follow-up till disbursement

📧 Email us: sales@adroitcorporation.in
📱 Call us: 7203010101 or 8734010101
🌐 Visit: dev1.adroitcorporation.in

Rajesh Savaniya