Nashik Tourism Subsidy for Expanding Hotels, Resorts and Homestays Before Kumbh 2027
If you run a hotel, resort, lodge, homestay or agro-tourism unit in Nashik district and want to add rooms before the Kumbh, the Nashik tourism subsidy under Maharashtra's Tourism Policy 2024 can pay back a meaningful part of that capex. It will not fund the construction itself, and the rules for expanding an existing unit are stricter than most owners expect.
The Simhastha Kumbh Mela opened with the flag-hoisting on 31 October 2026. The State Government has announced the main Amrit Snan days as 2 August, 31 August and 11 September 2027 (12 September at Trimbakeshwar). That leaves about nine months to build and open new rooms.
This guide follows the Tourism Policy of Maharashtra 2024, GR No. TDS-2022/09/CR No 542/Tourism-4 dated 18 July 2024, as amended and published by the Directorate of Tourism (DoT) in June 2025. It covers existing units on land that is already NA.
Which Nashik tourism subsidy zone is your taluka in?
Zone B names the Municipal Corporations of Nashik, Pune, Chhatrapati Sambhajinagar and Nagpur. Zone C is the rest of Maharashtra outside the Mumbai region. A further band, STZ/STD, applies only to specially declared tourism zones or districts.
Area | Zone | Note |
Nashik Municipal Corporation limits (Nashik city, Nashik Road, Panchavati, Cidco, Satpur) | B | Named in the policy |
Nashik taluka outside NMC limits, including Deolali Cantonment | C | Check which body you pay property tax to |
Malegaon taluka, including Malegaon Municipal Corporation | C (verify) | A corporation, but not named in Zone B |
Igatpuri, Trimbakeshwar, Sinnar, Niphad, Dindori, Peth, Surgana, Kalwan, Deola, Baglan, Nandgaon, Chandwad, Yeola | C | Includes municipal council towns |
Special Tourism Zone or District | STZ/STD | None notified for Nashik that we could find |
Two cautions. On a plain reading Malegaon is Zone C, because Zone B lists only four corporations by name; get DoT to confirm. And as of 3 November 2026 we found no notification declaring any part of the district a Special Tourism Zone, for the Kumbh or otherwise.
Unit types that qualify and their minimums
Annexure C of the policy defines each eligible unit:
Unit | Minimum under the policy |
Hotel | 10 lettable rooms with attached bathrooms; 1- to 5-star category certificate; Travel for LiFE certification |
Resort | 10 lettable rooms with attached bathrooms; 35% air-conditioned unless the location does not need it; 4 listed facilities such as a pool or conference room |
Homestay or B&B | Guests stay in the owner's residence; DoT registration; B&B needs at least 1 room |
Agro-tourism unit | 1 acre, 2 lettable units, a farm experience, DoT registration |
Tented accommodation | Fixed tents or pods with attached toilets, power, water and drainage |
Restaurant | 10 seats with washrooms, plus FSSAI and other licences |
Every eligible unit must be registered with DoT or the Union Ministry of Tourism.
Not registered, or below the minimum today?
The expansion route is written for units that are registered with DoT and were operating on or before the 2024 policy. If you are not registered, register now, but get DoT's written view on whether a fresh registration meets that condition before committing capex. An 8-room lodge does not meet the 10-room definition, and the policy does not say whether expanding past 10 rooms cures that. Registered homestays have a separate route under Note 6 for revamping or adding rooms.
Expansion rules: 20% or 50%?
Here the policy contradicts itself. Notes 3 and 4 below Table 6 say an expansion must be at least 20% of existing capacity. Paragraph 29.5.3(4) and the Annexure C definition of 'Expansion of Tourism Project' both say more than 50% of existing capacity, such as rooms.
Two of the three references say 50%, and one is the definition DoT will test your file against. Plan for more than 50%: a 20-room resort should add at least 11 rooms, not 4. The other rules:
Incentives apply only to the expansion portion, with Eligible Capital Investment (ECI) worked out for the new component alone.
A Prior Eligibility Certificate (PEC) must be obtained during construction, and a Final Eligibility Certificate (FEC) after operations begin. Both are mandatory.
Apply for the eligibility certificate within 180 days of starting operations.
ECI covers buildings, MEP, furniture, equipment, waste treatment and renewable energy. Land, consultants' fees, capitalised interest and working capital are excluded.
Note 1 allows capex of the five years before COD; paragraph 29.5.2 says four. Work with four.
The extra 5% for women, SC and ST entrepreneurs is written for new units only.
Nashik tourism subsidy: Zone B vs Zone C incentives
Almost every expansion will sit below the mega-project threshold of ₹200 crore in Zone B and ₹125 crore in Zone C. For these units:
Incentive | Zone B (within NMC) | Zone C (rest of district) |
Capital investment incentive | 25% of ECI | 30% of ECI |
Ceiling for stay-based units | ₹40 crore | ₹40 crore |
How it is paid | 3 yearly instalments from COD | 3 yearly instalments from COD |
Eligibility period | 7 years | 10 years |
SGST reimbursement | 75% of net SGST | 90% of net SGST |
Electricity duty exemption | 75% | 100% |
Stamp duty on sale, lease, mortgage | 75% exemption | 100% exemption |
Stamp duty on mortgage loan | 100% reimbursement | 100% reimbursement |
Yearly disbursement cannot exceed ECI divided by the eligibility period, and total incentives cannot exceed ECI. The two stamp duty rows overlap, so confirm with DoT whether you claim upfront through the stamp duty NOC or pay and claim back.
Rooms priced up to ₹7,500 a night now carry 5% GST without input tax credit, so SGST is 2.5% of tariff and the refund on a small expansion is modest. Our September 2025 post on Tourism Policy SGST incentives explains the refund. Adding a banquet hall? See our convention centre subsidy guide.
What already-NA land changes, and what it does not
NA permission: you already hold it. The Maharashtra Land Revenue Code (Second Amendment) Act, 2025 has removed the Collector's NA permission where the use is permitted under the Development or Regional Plan. Check that the permitted use covers hospitality.
NA tax: the same Act replaced annual NA assessment with a one-time premium, including for land converted earlier, collected before development permission. The policy exempts tourism projects from NA tax but is silent on this new premium. Ask before you pay.
Development charges: exempted for the tourism component. On an expansion this is a direct saving, because the revised building permission would otherwise attract charges on the new built-up area.
Additional FSI: outside Mumbai, up to 3 on a 12 m road, 3.5 on 18 m and 4 on 27 m, or the local DCR figure if higher, but not in Agriculture Zone or No Development Zone. Nashik is not among the premium-free areas, so expect a premium at 50% of the prevailing rate, payable in instalments.
Before finalising drawings, confirm with NMC, NMRDA or your municipal council that their regulations give effect to these provisions.
Month-by-month timeline to open before the Kumbh
Build in the monsoon, which slows site work from June, particularly in Igatpuri and Trimbakeshwar.
When | What to complete |
Nov 2026 | Confirm zone and DoT registration; run the 50% test; check road width and FSI; appoint architect; meet the bank |
Dec 2026 | Apply for PEC; file revised plans; request development charges exemption; term loan sanction |
Jan 2027 | Stamp duty NOC; mortgage; commencement certificate; start work with a separate capex ledger and meter |
Feb–Apr 2027 | Structure and services; file GST invoices and payment proofs monthly |
May 2027 | Finishes, furniture, fire NOC; apply for occupancy certificate |
Jun 2027 | Police, FSSAI and Shops licences; star classification; Travel for LiFE |
Jul 2027 | Open the new rooms. This is your COD |
Aug–Sep 2027 | Kumbh operations; keep records for the new block |
By Jan 2028 | Apply for FEC, within 180 days of COD |
2028–2030 | Capital incentive in three yearly instalments |
Each instalment is paid at the end of a year from COD. With a July 2027 COD, the first falls due around July 2028 at the earliest, a year after the Kumbh peak. Fund the whole build through your own money and a term loan, and treat the subsidy as a repayment source.
Share the PEC with your banker so the instalments can be built into the repayment schedule. Stamp duty on the mortgage, 0.3% of a loan above ₹5 lakh and capped at ₹20 lakh, is reimbursed in full.
Worked illustration: a Zone C resort adding 12 rooms
An existing, DoT-registered 20-room resort outside NMC limits adds 12 rooms, 60% of capacity, clearing the 50% test. Figures are illustrative.
Item | Amount |
Civil work for the new room block | ₹2.40 crore |
Electrical, plumbing and HVAC | ₹0.60 crore |
Furniture, fixtures and fittings | ₹0.50 crore |
Solar rooftop and STP upgrade | ₹0.20 crore |
Eligible Capital Investment (ECI) | ₹3.70 crore |
Architect, consultants, interest during construction (not eligible) | ₹0.30 crore |
Total project cost | ₹4.00 crore |
Term loan at 70% | ₹2.80 crore |
Capital incentive at 30% of ECI | ₹1.11 crore |
Paid in years 1, 2 and 3 after COD | ₹37 lakh each |
Mortgage stamp duty at 0.3% (reimbursed) | ₹84,000 |
Yearly SGST refund (60% occupancy, ₹4,000 tariff) | About ₹2.4 lakh |
Watch the annual ceiling. ECI of ₹3.70 crore over the 10-year Zone C period gives ₹37 lakh a year, which the capital instalment alone uses up in years 1 to 3. If DoT applies the ceiling to all incentives together, the SGST refund for those years could be held back, so model both cases. We have kept GST out of ECI because the policy's wording is unclear. In Zone B, the same project would earn 25%, or ₹92.5 lakh.
Common mistakes
Starting construction before applying for the PEC.
Planning a 20–49% expansion on the strength of the 20% note.
Mixing bills, meters and GST data of old and new blocks.
Counting land, consultants' fees or interest as ECI.
Assuming NA land means no premium or charges at sanction.
Missing the 180-day window after COD.
Expecting subsidy money before the Kumbh.
Documents checklist
DoT registration and proof of operations before July 2024
7/12 extract or property card, NA order or development permission, and a lease of at least 15 years if leased
Existing and revised approved plans, commencement and occupancy certificates
Project report with the capacity working
Quotations, GST invoices and payment proofs for the expansion only
Architect's certificate of work done and the ECI working
Loan sanction letter, mortgage documents and stamp duty NOC
Fire NOC, police, FSSAI and Shops licences
Star or category certificate and Travel for LiFE registration
GST returns and the new block's electricity bills
Frequently asked questions
Can I claim incentives on my existing rooms?
No. Every benefit is limited to the expansion portion.
My resort is in Nashik city. Which zone applies?
Zone B if it is within Nashik Municipal Corporation limits: 25% capital incentive and 75% SGST reimbursement for seven years. Just outside, Zone C.
Is any part of Nashik a Special Tourism Zone for the Kumbh?
We found no such notification as of 3 November 2026. Check with DoT's Nashik regional office.
Will the subsidy arrive before the Kumbh?
No. The first instalment is due a year after COD, so a July 2027 opening means mid-2028 at the earliest.
Can I run a temporary tent camp instead?
September 2026 reports say the Nashik-Trimbakeshwar Kumbh Mela Authority has framed an SOP for private tent cities on sites of at least two acres, operating between March and December 2027. A temporary camp is not a permanent tented-accommodation unit under the policy, so do not assume incentives, and read the SOP itself.
Do homestays need a 50% expansion?
Note 6 gives registered homestays a route for revamping or adding rooms without stating a threshold. Confirm with DoT.
How DP Jadhav & Co. helps
Tourism Policy advisory is part of our government incentive practice. For an expansion we check zone and eligibility, prepare the project report and capacity working, file the PEC and FEC, set up a separate capex and GST trail for the new block, and work with your banker on the loan and stamp duty NOC. After COD, we track instalments and SGST refund claims.
Planning to add rooms before the Kumbh? Email contact@dpjadhav.com or call 9860804684 for a zone and eligibility check.
CMA Dhananjay Jadhav is the founder of DP Jadhav & Co., Cost & Management Accountants, Nashik, and Past Chairman of the ICMAI Nashik Chapter (2025–26).
Disclaimer: This is a general guide based on the Tourism Policy of Maharashtra 2024 (GR No. TDS-2022/09/CR No 542/Tourism-4, 18 July 2024) as amended in June 2025, and on announcements available on 3 November 2026. It is not legal or tax advice. Read the official policy document and confirm eligibility with the Directorate of Tourism before you invest.
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