Tented Accommodation Tourism Subsidy in Gujarat

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Tented Accommodation Tourism Subsidy in Gujarat

⛺ Subsidy for Tented Accommodation Tourism Projects in Gujarat

Unlock 15% Capital Subsidy + Duty Exemptions Under Gujarat Tourism Policy 2021–25

Tented accommodations have become a symbol of sustainable luxury and experiential travel. From desert safaris to forest retreats, Gujarat offers immense potential for tented stays at exotic and remote locations. To encourage investment in this eco-tourism segment, the Government of Gujarat, under its Tourism Policy 2021–25, offers attractive subsidies including 15% capital subsidy, stamp duty reimbursement, electricity duty exemption, and more.

This blog explains in detail the eligibility, subsidy benefits, required infrastructure, and the application process for setting up a tented accommodation tourism project.

🏕️ What is a Tented Accommodation?

As per the Gujarat Tourism Policy:

“Tented Accommodation” refers to new tourism projects built on a permanent foundation with basic infrastructure and meeting the classification guidelines of the Ministry of Tourism (MoT), Government of India.

Key conditions:

The tents must remain operational for at least 90 days every year
The project must continue operations for five consecutive years
It must be a new project (expansions are not eligible)
Must obtain category classification from the Ministry of Tourism, GoI

📅 Policy Applicability

Policy Duration: 1st January 2021 – 31st December 2025
Only projects with investment after 01-Jan-2021 are eligible
Must start partial or full commercial operations during the policy period

📌 Extended Timeline for Project Completion

Capital Investment	Completion Deadline
Up to ₹100 Cr	Must commence full commercial operation by 31-Dec-2025
₹101–250 Cr	Partial ops during policy + full within 6 months
₹251–500 Cr	Full completion within 12 months from policy end
₹501 Cr and above	Full completion within 18 months

🏛️ Financial Incentives for Tented Accommodation

✅ 1. Capital Subsidy – 15%

Tourism Unit Type	Built-up Area Rate (MoT certified)	Capital Subsidy
5-Star Equivalent	₹3,400 per sq. ft.	15% of eligible investment
4-Star Equivalent	₹2,550 per sq. ft.	15%
3-Star Equivalent	₹2,125 per sq. ft.	15%
1/2-Star Equivalent	₹1,700 per sq. ft.	15%

📌 Land cost is excluded. Only built-up area with permanent infrastructure is considered.

Example:

Built-up Area	Rate	Eligible Investment	15% Subsidy
50,000 sq. ft.	₹3,400/sq. ft.	₹17 Cr	₹2.55 Cr

✅ 2. Electricity Duty Exemption

100% exemption for 5 years
Based on the first electricity bill, the tourism department issues an exemption order to the electricity board

✅ 3. Stamp Duty & Registration Fee Reimbursement

100% reimbursement of applicable stamp duty and registration fees for the project property/lease

🌱 Subsidy for Green & Sustainable Certification

Certification Body	Subsidy Offered
IGBC / GRIHA / LEED (Green Building)	50% of fees or ₹10 Lakh (whichever is less)
GSTC (Sustainable Tourism)	50% of fees or ₹5 Lakh (whichever is less)

📌 Membership, pre-certification, renewal, or provisional fees are not eligible.

📢 Market Development Assistance (MDA)

🎯 Eligible for:

Exhibitions, travel and tourism shows in India and abroad
Maximum 5 events during the policy period
Subject to prior approval from Commissioner of Tourism

Exhibition Type	Subsidy Offered
Within Gujarat (National/International)	50% of rent or ₹30,000/event (whichever is lower)
Outside Gujarat (National)	75% of rent or ₹1,00,000/event (whichever is lower)
Outside Gujarat (International)	75% of rent or ₹2,00,000/event (whichever is lower)
Abroad	60% of rent (max ₹5 Lakh) + ₹40,000 airfare per event

📋 Application & Documentation Requirements

Prepare DPR – Include layout plan, location, cost estimate, amenities, and MoT certification plan
Register on Gujarat Tourism Portal – https://tourism.gujarat.gov.in
Start Construction – Ensure tented units have permanent base and basic infrastructure
Commence Operation – Start commercial activity and issue first bill
Apply for Subsidy – Submit claim for capital subsidy and duty exemptions within the policy period

📌 Tented accommodations must not be part of a shopping mall or commercial complex.

💼 Case Example – Desert Camp in Kutch

Project: Eco-Desert Stay
Built-up Area: 30,000 sq. ft.
MoT Equivalent: 4-Star
Capital Investment: ₹7.65 Cr
Eligible Subsidy (15%): ₹1.15 Cr
Stamp & Electricity Benefits: ₹0.50 Cr
Green Certification: ₹10 Lakh
MDA for 2 events: ₹2 Lakh