Convention Centre Subsidy in Maharashtra: What Tourism Policy 2024 Offers, and Where Projects Lose It
Banquet halls, event lawns and convention centres are coming up across Maharashtra's growing cities. Most promoters assume tourism subsidies are only for hotels and resorts, and never look for a convention centre subsidy. There is one. Under the Maharashtra Tourism Policy 2024, a MICE or Convention Centre is an eligible tourism unit in its own right, with a capital incentive of up to 30% in most of the state, SGST reimbursement for up to 10 years, and relief on stamp duty, electricity duty and development charges.
The catch is that the definition is specific, the order of approvals matters, and many family-owned projects are structured in a way that quietly reduces the claim, or kills it. This guide explains how the convention centre subsidy works: what qualifies, what each zone gets, and the mistakes we see most often.
Based on the Tourism Policy of Maharashtra 2024 (GR No. TDS-2022/09/CR No. 542/Tourism-4 dated 18 July 2024, as amended in June 2025).
What "MICE" means, and why it matters for your venue
MICE stands for Meetings, Incentives, Conferences and Exhibitions. The policy lists "MICE or Convention Centres" and "Exhibition Spaces" among eligible tourism units. It places them in the same incentive category as hotels and resorts (Category 2), with the capital incentive capped at ₹40 crore per project.
So a venue that hosts corporate conferences, dealer meets, trade exhibitions, convocations and product launches can claim tourism incentives, even if it has no hotel rooms at all.
The eligibility test: four conditions
To be treated as a MICE or Convention Centre, the project needs:
At least one hall seating 1,000 persons. One hall, not the combined capacity of all halls. As a rough rule, theatre-style seating needs 8 to 10 sq ft per person once the stage, aisles and fire exits are allowed for, so a hall of roughly 10,000 to 12,000 sq ft is the practical minimum. Ask your architect to show the 1,000-seat layout on the drawings, consistent with the fire NOC occupancy load.
Parking for at least 200 cars and 20 coaches or buses. A total figure such as "250 vehicles" is not enough on its own. The layout should show car bays and bus bays separately.
EV charging stations.
Category certification from the Ministry of Tourism or the Directorate of Tourism (DoT), Maharashtra, under the guidelines issued from time to time.
Every eligible unit must also register with the DoT and use its booking platform where available. Registration under the Travel for LiFE mission is mandatory.
MICE centre or hotel? A common confusion
Many venue owners first try the hotel route because they plan a few guest rooms. Under the policy, a hotel needs at least 10 lettable rooms with attached bathrooms, and a resort also needs 10 rooms plus other facilities. A venue with four or six rooms will not qualify as a hotel, but it can still qualify as a MICE centre if it meets the hall and parking conditions. The rooms simply become part of the convention facility.
Which zone is your project in?
Incentives depend on location. The policy divides Maharashtra into four zones:
Zone | Area covered |
A | Municipal corporations in the Mumbai Metropolitan Region (MMR) |
B | Municipal corporations of Nashik, Pune, Chhatrapati Sambhaji Nagar and Nagpur |
C | Rest of Maharashtra, including other municipal corporations such as Kolhapur, Solapur, Amravati and Ahilyanagar |
STZ/STD | Specially declared tourism zones or districts |
Projects outside the biggest cities get the better deal: Zone C rates are higher than Zones A and B on almost every incentive.
Capital investment incentive: the core of the convention centre subsidy
This is the headline benefit: a percentage of your eligible capital investment, paid in three equal annual instalments after commercial operations begin.
Zone | MSME and up to Mega threshold | Mega | Ultra Mega |
A | 20% (up to ₹300 cr) | 25% (₹300–500 cr) | 30% (₹500 cr and above) |
B | 25% (up to ₹200 cr) | 30% (₹200–300 cr) | 35% (₹300 cr and above) |
C | 30% (up to ₹125 cr) | 35% (₹125–200 cr) | 40% (₹200 cr and above) |
STZ/STD | 30% (up to ₹50 cr) | 35% (₹50–100 cr) | 40% (₹100 cr and above) |
For MICE and convention centres the capital incentive is capped at ₹40 crore, and most projects fall in the first column.
Women entrepreneurs and SC/ST promoters holding at least 51% equity get an additional 5% capital incentive, within an overall cap of 40%. In a family partnership, the ratios written into the deed decide this, so it is worth checking before the deed is finalised.
Other fiscal incentives
For projects below the Mega threshold, which covers most convention centres, the policy offers:
Incentive | Zone A | Zone B | Zone C | STZ/STD |
Eligibility period | 5 years | 7 years | 10 years | 10 years |
SGST reimbursement (of net SGST paid) | 50% | 75% | 90% | 90% |
Electricity duty exemption | 50% | 75% | 100% | 100% |
Stamp duty and registration exemption (purchase or lease deeds, mortgage) | 50% | 75% | 100% | 100% |
Reimbursement of stamp duty on mortgage loan | 100% | 100% | 100% | 100% |
Quality certification | 50% of cost, up to ₹2 lakh (national) or ₹10 lakh (international) |
Two points that are easy to miss:
SGST is reimbursed on net tax paid, that is, SGST actually paid in cash after input tax credit, not the gross SGST charged on invoices.
Ceilings apply. Total incentives cannot exceed the eligible capital investment, and the amount disbursed in any year is capped at the eligible capital investment divided by the eligibility period.
Non-fiscal benefits that matter at the building-permission stage
Full exemption from non-agricultural (NA) tax and NA permission for tourism projects.
Exemption from development charges on the tourism or hospitality component when the plan is sanctioned.
Additional FSI outside Greater Mumbai of up to 3 (12 m road), 3.5 (18 m road) or 4 (27 m road), or as per local DCR if higher, except in agricultural and no-development zones. A premium may apply on the additional FSI. Basement parking, storage and DG set areas are not counted in FSI.
Industry status for tourism projects, open access power, and licence renewals every five years instead of every year.
Environment and fire clearances facilitated within one month.
If your building plan is still with the planning authority, raise these now, not after the plan is sanctioned.
What counts as eligible capital investment
Included: buildings and structures; internal roads, fencing, signage and toilets; plant and equipment, including kitchen equipment; mechanical, electrical and plumbing installations; furniture, fixtures and fittings; waste treatment; transformers and generators; solar and other captive power; and installation charges.
Excluded: land; pre-construction expenses and consultancy fees; capitalised interest; working capital; intangible assets; and anything funded by another government grant. Mixed use is allowed, but only the assets used for tourism qualify.
Timing matters too. Only capex incurred within a limited window before commercial operations counts. The policy text mentions five years in one place and four in another, so plan on four.
Ownership and leasing: where family projects go wrong
Many venues are built on land owned by a parent, while a family partnership firm or company runs the business. That can work, but the structure has to be set up before the money is spent.
Capital assets must be paid for and owned or leased by the project, meaning the applicant. A building lease must run for at least 15 years.
Leased assets are counted only at their net present value, discounted at 10%, not at full cost. If the landowner builds and the operating firm merely leases the building, the eligible amount shrinks.
If the capex sits with one person and the GST registration with another, the capital incentive and the SGST refund end up split across two parties. That is a weak claim.
The cleaner route is usually a registered long-term land lease to the operating entity, with that entity contracting and paying for construction so that every invoice carries its GSTIN. Stamp duty and registration on lease deeds for tourism projects can be fully exempt in Zone C, so time the lease deed with the DoT approvals rather than registering it in a hurry.
The approval sequence
Feasibility and structuring. Confirm the zone, category, hall and parking design, ownership and lease structure, and capex split.
Detailed Project Report (DPR). Capex break-up (land, civil, MEP, equipment, furniture), means of finance and projections.
Prior/Provisional Eligibility Certificate (PEC) from the DoT, obtained during construction. It is issued for up to five years for non-Mega projects (seven for Mega), with one extension of up to a year. Only units that obtained or applied for provisional registration under the 2024 policy can claim the capital incentive.
Construction and record-keeping. Invoices, GST, payments and asset registers in the applicant's name, mapped to the DPR heads.
Commercial operations and category certification.
Final Eligibility Certificate (FEC). Apply within 180 days of starting operations. A delay leads to proportionate curtailment of incentives.
Claims. The capital incentive is paid in three annual instalments from the commercial operation date recorded in the FEC. SGST and other performance-linked incentives are claimed each year, supported by GST returns, a CA certificate and a bank assessment report.
Convention centre subsidy: a worked illustration
Consider a convention centre in a Zone C city with eligible capital investment of ₹15 crore, excluding land:
Capital incentive at 30% = ₹4.5 crore, paid as ₹1.5 crore a year for three years after operations begin.
SGST reimbursement of 90% of net SGST paid, for 10 years.
Electricity duty fully exempt for 10 years; stamp duty on the land lease and the term-loan mortgage exempt or reimbursed.
Two ceilings apply: total incentives cannot exceed ₹15 crore, and annual disbursement is capped at ₹15 crore ÷ 10 years = ₹1.5 crore. If that annual cap is applied to all incentives together, the capital instalment alone would use it up in years one to three. Model how SGST refunds are released in those years, and confirm the treatment with the DoT, before projecting cash flows to your bank.
Common mistakes we see
Designing the largest hall below 1,000 seats, or counting the combined capacity of several halls.
Showing total parking without separate bus bays or EV charging.
Applying under the hotel category without the 10-room minimum.
Spending heavily on construction before the PEC is in hand.
Construction invoices in the landowner's name while the operating firm holds the GST registration.
Presenting the project as a wedding lawn. Lawns and kitchens are fine, but the DPR should show the conference and exhibition use clearly, because only tourism components qualify.
Missing the stamp duty exemption on the lease deed and the development-charge exemption at plan sanction.
Missing the 180-day window for the Final Eligibility Certificate.
Documents to keep ready
7/12 extract, Index-II and title documents
Entity documents: partnership deed or incorporation documents, PAN, GST and Udyam registration
Lease or operating agreement between the landowner and the operating entity (a draft, if not yet executed)
Architect's plans showing the 1,000-seat hall layout and the car, bus and EV parking break-up
Building permission status and approvals
DPR with capex break-up, means of finance and projections
Details of any expenditure already incurred, and in whose name
How DP Jadhav & Co. can help
We advise on Maharashtra Tourism Policy 2024 incentives from the feasibility stage to the final claim: eligibility and zone assessment, ownership and lease structuring, DPR preparation, PEC and FEC applications, capex tracking against eligible heads, and annual SGST and capital incentive claims.
Planning a convention centre, exhibition venue or other tourism project? Write to contact@dpjadhav.com or call 9860804684 for a preliminary eligibility review.
Disclaimer: This article summarises the Tourism Policy of Maharashtra 2024, as amended in June 2025, for general information. Operational guidelines, notifications and DoT interpretations can change, and eligibility and incentive amounts are decided by the Directorate of Tourism case by case. Refer to the official policy document and take professional advice before making investment decisions.
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