Introduction
In the first part of our exploration of Maharashtra tourism incentives and the industry, we examined the government’s ambitious initiatives to revitalize the sector, focusing on infrastructure development and streamlined processes for investors. In this second part, we will delve deeper into the specific incentives being offered to tourism units, large projects, and MSMEs (Micro, Small, and Medium Enterprises). These financial and operational incentives, which range from SGST reimbursements to electricity duty exemptions and interest subventions, are designed to boost investment and promote sustainable, inclusive growth in the state’s tourism landscape.
We’ll also discuss the classifications for mega-projects, shedding light on how Maharashtra is positioning itself as a prime destination for tourism-related ventures, with specific benefits for projects based in specially declared tourism zones (STZ). Whether you’re an investor or a small business owner, understanding the Maharashtra tourism incentives is key to making the most of Maharashtra’s growing tourism potential.
Maharashtra Tourism Incentives for Tourism Units
| A | B | C | STZ / STD | |
| Eligibility period (in years) | 03 | 03 | 05 | 05 |
| SGST reimbursement | 50% of SGST off on net paid | 75% of SGST off on net paid | 100% of SGST off on net paid | 100% of SGST off on net paid |
| Electricity duty exemption | 50% | 75% | 100% | 100% |
| Electricity tariff (difference between commercial tariff and industrial tariff) | 50% | 75% | 100% | 100% |
| Interest subventions | Up to 5% interest subventions on loans of up to ₹2 crore. Ceiling on total interest subventions shall be ₹5 lakhs. | Up to 5% interest subventions on loans of up to ₹2 crore. Ceiling on total interest subventions shall be ₹5 lakhs. | Up to 5% interest subventions on loans of up to ₹2 crore. Ceiling on total interest subventions shall be ₹10 lakhs. | Up to 5% interest subventions on loans of up to ₹2 crore. Ceiling on total interest subventions shall be ₹10 lakhs. |
| Stamp duty and registration charges exemption | 50% | 75% | 100% | 100% |
| Sale or lease deeds executed in respect of purchase / lease of land / built-up area for a tourism project, provided that the sale or lease deed is entered into during the period of the policy. Mortgage and hypothecation for undertaking a tourism project during the period of the policy. | ||||
| The above incentives shall not exceed the eligible fixed capital investment of the project, within the given eligible period, whichever is earlier. Eligible units should register with the Directorate of Tourism and Ministry of Tourism. Also, use of the booking platform of DoT is mandatory, if available. To avail of incentives, registered units must apply to the Directorate of Tourism for an eligibility certificate. | ||||
Maharashtra Tourism Incentives for Large, Mega and Ultra Mega Tourism Projects
| A | B | C | STZ / STD | Ultra mega project unit | ||
| Eligibility period (in years) | 5 | 7 | 10 | 10 | 15 | |
| SGST reimbursement | 50% of SGST off on net paid | 75% of SGST off on net paid | 100% of SGST off on net paid | 100% of SGST off on net paid | 100% of SGST off on gross payable | |
| Electricity duty exemption | 50% | 75% | 100% | 100% | 100% | |
| Electricity tariff (difference between commercial tariff and industrial tariff) | 50% | 75% | 100% | 100% | 100% | |
| Interest subventions | Up to 5% interest subventions on loans of up to ₹5 crore. Ceiling on total interest subventions shall be ₹20 lakhs within the given eligible period. | Up to 5% interest subventions on loans of up to ₹10 crore. Ceiling on total interest subventions shall be ₹25 lakhs of total interest paid within the eligible period. | Up to 5% interest subventions on loans of up to ₹15 crore. Ceiling on total interest subventions shall be ₹30 lakhs of total interest paid within the eligible period. | Up to 5% interest subventions on loans of up to ₹20 crore. Ceiling on total interest subventions shall be ₹50 lakhs within the given eligible period. | Up to 5% interest subventions on loans of up to ₹25 crore. Ceiling on total interest subventions shall be ₹75 lakhs within the given eligible period. | |
| Quality certification, travel for life registration and certification, etc. | Reimbursement offered up to 100% or ₹2 lakh for National Certification and ₹10 lakh for International Certification a. Applicants shall be eligible for costs associated with quality certification as below: i. Cost of certification (registration, application fees, and other payments to certifying authority) ii. Cost of association consulting, limited to 50% of cost of certification. Only quality certifications recognized by the MoT Department shall be eligible. b. Reimbursement shall be disbursed upon submission of proof of obtaining certification and its cross-verification. | |||||
| Sustainability initiatives incentive | Terms | Incentive | ||||
| Maximum percentage of investment in capital cost of implementing the sustainability initiatives | Up to 25% | |||||
| Ceiling on reimbursement per project | Up to ₹25 lakh or actual GST paid cost whichever is less | |||||
| Stamp duty and registration charges exemption | 50% | 75% | 100% | 100% | 100% | |
| Sale / lease deeds executed in respect of purchase / lease of land / built-up area for a tourism project, provided that the sale or lease deed is entered into during the period of the policy. Mortgage and hypothecation for undertaking a tourism project during the period of the policy. | ||||||
Maharashtra Tourism Incentives for MSME Units
| A | B | C | STZ / STD | |||||
| Eligibility period (in years) | 5 | 5 | 7 | 7 | ||||
| SGST reimbursement | 50% of SGST off on net paid | 75% of SGST off on net paid | 100% of SGST off on net paid | 100% of SGST off on net paid | ||||
| Electricity duty exemption | 50% | 75% | 100% | 100% | ||||
| Electricity tariff (difference between commercial tariff and industrial tariff) | 50% | 75% | 100% | 100% | ||||
| Interest subventions | Up to 5% interest subventions on loans of up to ₹5 crore. Ceiling on total interest subventions shall be ₹20 lakhs within the given eligibility period. | Up to 5% interest subventions on loans of up to ₹10 crore. Ceiling on total interest subventions shall be ₹25 lakhs within the given eligibility period. | Up to 5% interest subventions on loans of up to ₹15 crore. Ceiling on total interest subventions shall be ₹50 lakhs within the given eligibility period. | Up to 5% interest subventions on loans of up to ₹20 crore. Ceiling on total interest subventions shall be ₹50 lakhs within the given eligibility period. | ||||
| Quality certification, incentives, travel for life registration and certification, etc. | Reimbursement offered up to 100% or a maximum ₹2 lakh for National Certification and ₹10 lakh for International Certification a. Application shall be eligible for costs associated with quality certification as below: i. Cost of certification (registration, application fees and other payments to certifying authority) | |||||||
| Sustainability initiatives incentive | Terms | Incentive | ||||||
| Maximum percentage of investment in capital cost of implementing the sustainability initiatives | Up to 25% | |||||||
| Ceiling on reimbursement per project | Up to ₹25 lakh or actual GST paid cost whichever is less | |||||||
| Stamp duty and registration charges exemption | 50% | 75% | 100% | 100% | ||||
| Sale / lease deeds executed in respect of purchase / lease of land / built-up area for a tourism project provided that the sale or lease deed is entered into during the period of the policy. Mortgage and hypothecation for undertaking a tourism project during the period of the policy | ||||||||
Mega – Project Classifications and Threshold Limits
| Type of Units | Area | Zone Classifications | Fixed Capital Investment in INR Crores | Direct Employment Generation |
| Mega Project Unit | Mumbai, Thane, and Navi Mumbai Municipal Area | A | 300 | 400 |
| Nashik, Pune, Aurangabad, and Nagpur Municipal Corporation | B | 150 | 200 | |
| Rest of Maharashtra | C | 100 | 50 | |
| Specially declared tourism zone | STZ / STD | 50 | 50 | |
| Ultra Mega Project Unit | Entire State | 500 | 800 |
Conclusion
The state is promoting strategic approaches for Maharashtra tourism incentives that not only support large-scale projects but also ensure that smaller businesses and MSMEs can thrive. The government’s focus on sustainability, eco-friendly practices, and streamlined approval processes aligns with global trends and makes Maharashtra an attractive destination for tourism investment. Including various financial incentives, from SGST reimbursements to interest subventions, further lowers barriers to entry for new and existing tourism units.
As the state continues to enhance its tourism offerings through dedicated zones and robust support structures, the opportunity for businesses to grow in this sector is immense. By embracing these incentives and fostering responsible tourism practices, Maharashtra is setting itself up to become a key player in the global tourism industry.
How Can We Help
At HMSA Consultancy Services LLP, we offer comprehensive support for businesses looking to tap into Maharashtra’s booming tourism sector, including insights into Maharashtra tourism incentives. Our expert team specializes in creating detailed project reports and conducting feasibility studies to ensure that your tourism venture qualifies for the most favorable government incentives available.
Whether you’re interested in eco-tourism, luxury accommodations, or thrilling adventure parks, our personalized assistance will guide you through the complexities of government regulations and application processes. We not only help you identify relevant Maharashtra tourism incentives but also assist in maximizing benefits through sustainable practices, making your project an appealing and responsible investment. Contact us today to transform your tourism venture into a thriving success in Maharashtra.
