Subsidy for Houseboat & River Cruise Projects in Gujarat

🚤 Subsidy for Houseboat and River Cruise Tourism Projects in Gujarat

Unlocking Opportunities Under Gujarat Tourism Policy 2021–25

With Gujarat’s vast network of scenic rivers and tranquil backwaters, houseboats and river cruises are emerging as a new dimension in the state’s tourism offerings. To promote water-based tourism infrastructure, the Government of Gujarat, through its Tourism Policy 2021–25, is offering capital subsidy, duty exemptions, and marketing support to entrepreneurs investing in houseboats or river cruise tourism.

This blog explains in detail the benefits, eligibility, and application process for houseboat and river cruise tourism projects in Gujarat.

🛳️ What Is a Houseboat Project?

A Houseboat is defined as a tourist facility operating on water (stationary or slow-moving), offering accommodation and travel experiences. It must fulfill the following:

• Minimum 1 double bedroom
• At least 1 washroom
• Kitchen and dining area
• Should remain operational for at least 6 months per year for 5 consecutive years

❗ Standalone food boats, transport-only boats, or non-tourism vessels are not eligible.

📆 Policy Period and Applicability

• Operative from 1st January 2021 to 31st December 2025
• Only new houseboat projects are eligible (expansions not covered)
• Capital investment made on or after 1st Jan 2021 will be considered
• Project must register with the Commissioner of Tourism, Gujarat
• Commercial operations must begin within the policy period

🏛️ Financial Benefits for Houseboat Projects

✅ 1. Capital Subsidy – 15%

📌 Eligible investment includes cost of construction, boat interiors, safety systems, onboard amenities. Land cost is excluded.

Example Calculation:

✅ 2. Electricity Duty Exemption – 100% for 5 Years

After the first electricity bill is issued, the tourism department will notify complete exemption for 5 years.

✅ 3. Stamp Duty & Registration Fee Reimbursement – 100%

Full reimbursement of stamp duty and registration fee on property/lease agreements for setting up tourism infrastructure.

✅ 4. Green Building & Sustainability Certification Subsidy

Applicable if the houseboat unit obtains certifications from:

• IGBC, GRIHA, or LEED – for Green Building
• GSTC – for Sustainable Tourism

💡 Membership and renewal fees are not eligible.

✅ 5. Market Development Assistance

Support for promotion through tourism exhibitions:

✅ Can be claimed for maximum 5 events during policy period
✅ Must be approved by the Commissioner of Tourism
✅ Claims to be filed within 180 days of the event

📋 Eligibility Conditions

To qualify for subsidy and support:

• Must be a new project registered under the Tourism Policy 2021–25
• Must operate for 6 months/year for 5 years
• Must have all basic amenities onboard
• Must start commercial operations during policy period
• Must register on https://tourism.gujarat.gov.in
• Must not be part of a commercial mall/complex

🧭 Step-by-Step Application Process

Step 1: Project Planning

Prepare a Detailed Project Report (DPR) including:

• Boat design and capacity
• Facilities offered
• Estimated cost and timelines
• Safety & pollution control measures

Step 2: Register Tourism Unit

Register your project with the Commissioner of Tourism, Gujarat.

Step 3: Begin Implementation

Start construction/procurement and ensure the project meets the minimum criteria.

Step 4: Commence Operations

Start commercial operations and issue your first bill (official start date).

Step 5: Apply for Subsidies

Apply for capital, duty, and marketing subsidies:

• Within 180 days of commercial operation
• With necessary documents, bills, proof of payments, certifications

💡 Case Study – Sample Project

Project: River Cruise Houseboat on Narmada near Statue of Unity
Capital Investment: ₹5.00 Cr
Subsidy Eligible:

• 15% Capital Subsidy = ₹75.00 Lakh
• Stamp & Registration Reimbursement = ₹6.00 Lakh
• Green Certification = ₹10.00 Lakh
• Marketing Participation = ₹2.00 Lakh
• Electricity Duty Savings (5 years) = ₹4.00 Lakh

Total Benefit: ₹97.00 Lakh+

❓ Frequently Asked Questions (FAQs)

1. Is expansion of an old houseboat project eligible?

❌ No, only new projects are eligible.

1. Can the project operate only for 3–4 months in a year?

❌ No. Minimum 6-month operation per year is required for 5 years.

1. Do I need a star rating to claim benefits?

Not mandatory, but for capital subsidy calculations, MoT star rating category can be considered for rate benchmarks.

1. Can I claim benefits under both Gujarat and Central Government schemes?

Yes, as long as the total benefits do not exceed the total investment.

📞 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

Rajesh Savaniya