The scheme aims to provide Central Financial Assistance for setting up, expanding, upgrading, and replacing equipment for institutions involved in tourism and hospitality education and capacity building. Benefits include capital grants for construction and equipment.
The scheme aims to provide Central Financial Assistance for setting up, expanding, upgrading, and replacing equipment for institutions involved in tourism and hospitality education and capacity building. Benefits include capital grants for construction and equipment.
##### ***A. Financial Ceilings for Projects*** • **Setting up a new State Institute of Hotel Management (SIHM):** ◦ Maximum Central Financial Assistance ceiling is ₹12,50,00,000/-. ◦ Construction ceiling is ₹10,00,00,000/-. ◦ Equipment purchase ceiling is ₹2,50,00,000/-. ◦ Additional financial assistance for construction of Hostel Block is up to ₹4,00,00,000/-. **•** **Setting up a SIHM in an existing Building:** ◦ Central Financial Assistance (CFA) for the academic block construction is limited to ₹6,00,00,000/- or 75% of the construction cost, whichever is less. ◦ Maximum financial assistance for construction of a hostel is ₹2,00,00,000/-. ◦ Maximum financial assistance for purchase of equipment is ₹2,00,00,000/-. **•** **Setting up a new Food Craft Institute (FCI) by State Government/Union Territory Administration:** ◦ Over-all ceiling is ₹5,50,00,000/-. ◦ Construction of building ceiling is ₹4,35,00,000/-. ◦ Equipment ceiling is ₹1,15,00,000/-. ◦ Additional financial assistance for hostel facilities is up to ₹2,00,00,000/-. **•** **Setting up a FCI in an existing Building:** ◦ Central Financial Assistance for the construction of the academic block is limited to ₹2,80,00,000/- or 75% of the construction cost, whichever is less. ◦ Financial assistance for purchase of equipment is up to ₹1,15,00,000/-. **•** **Applied Training Centre (ATC) attached to Central IHMs:** ◦ Assistance is up to a maximum of ₹5,00,00,000/- for construction. **•** **Promotional Initiatives (Broad-ba
Step 1: Offline application — step 1
Step 1: Society Formation, Registration, and Land Commitment
Step 2: Offline application — step 2
The applicant must ensure that the Central Government, State Government, or Union Territory Administration forms a relevant Society (Institute of Hotel Management/Food Craft Institute/State Institute of Hotel Management) and registers it under the Societies Registration Act 1860 before the proposal is considered. Simultaneously, the State Government/Union Territory Administration concerned must transfer a requisite piece of developed land, free from all encumbrances, measuring the minimum required acreage (five acres generally, or less for specific locations/institutes), and must commit to providing basic services such as electricity and water supply.
Step 3: Offline application — step 3
Step 2: Detailed Project Report Submission
Step 4: Offline application — step 4
The State Government or Union Territory Administration must submit a Detailed Project Report covering all aspects of the project (whether setting up new institutes, expansion, or upgradation) to the Ministry of Tourism, ensuring adherence to the norms and formats being developed in consultation with the National Council for Hotel Management & Catering Technology. The proposal must include necessary land transfer documents and, in specific cases, an undertaking regarding adherence to academic norms.
Step 5: Offline application — step 5
Step 3: Approval and Constitution of Monitoring Bodies
Step 6: Offline application — step 6
Upon the Ministry of Tourism’s decision to sanction the project, the society formed to run the institution must constitute a Project Construction Committee (PCC) for the ground-level implementation and monitoring of the project, with the committee's composition decided in consultation with the Ministry of Tourism. Furthermore, a proper Agreement must be established with the Executing Agency (such as the Central Public Works Department/Public Works Department or other Central/State Government Agency) detailing terms, cost, timeline, and penalty clauses for delays.
Applications are accepted only on the official government portal.
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