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 Project Type | Subsidy Rate |
| Bhunga / Cottage / Log Hut | 15% of eligible capital investment |
📌 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:
| Certification Type | Subsidy |
| Green Building Certification | 50% of certification cost, up to ₹10.00 Lakh |
| Sustainable Tourism (GSTC) | 50% of cost, up to ₹5.00 Lakh |
✅ 4. Marketing & Promotion Subsidy
Participation in tourism exhibitions and travel fairs is reimbursed as:
| Event Type | Subsidy |
| National / International (within Gujarat) | 50% or ₹30,000 (whichever is lower) |
| National (outside Gujarat) | 75% or ₹1.00 Lakh |
| International (within India) | 75% or ₹2.00 Lakh |
| International (Abroad) | 60% or ₹5.00 Lakh + airfare up to ₹40,000 |
📝 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:
| Guide Limit | Subsidy |
| Max 2 guides | ₹4,000/month per guide for 6 months/year |
| Duration | Up to 5 years |
📅 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
| Project Name | Rann Bhunga Village Stay |
| Investment | ₹2.00 Crore |
| Capital Subsidy (15%) | ₹30.00 Lakh |
| Green Certification Subsidy | ₹10.00 Lakh |
| Stamp Duty & Electricity Exemption | ₹7.00 Lakh |
| Marketing Event Subsidy | ₹2.00 Lakh |
| Total Subsidy Benefit | ₹49.00 Lakh+ |
❓ FAQs
- Can an existing resort convert into Bhunga and claim subsidy?
❌ No. Only new projects are eligible for capital subsidy.
- Can I build Bhungas with modern interiors?
✅ Yes, as long as the outer architectural design reflects Bhunga style.
- 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: www.adroitcorporation.in
