Project Approval

The Department of Tourism, Government of Kerala offers a wide range of financial incentives, publicity support and guidance to tourism specific project investments. Some of them are location specific. Secretariat -  Kerala GovernmentWe extend out services to commission reputed architects who can visualize and design all sorts of Tourism projects, getting approval from all Government Agencies, Financial Agencies, applying for subsidies etc.

The services include:

State Investment Subsidy

Incentives for approved projects

The State Investment Subsidy at present is 10% of the investment with a maximum ceiling limit of Rs. 10 lakhs. For sanctioning subsidy, the value of land will be calculated only at 10% (maximum) of the total cost of the project, whatever be the area or cost of the land.

Projects Eligible For Subsidies/Concessions*

  • Classified hotels approved by the State/Central Government
  • Restaurants approved by the Classification Committee of the Government of Kerala
  • Amusement parks and recreation centres approved by the Department of Tourism, Government of Kerala
  • Ropeways at tourist centres
  • Purchase of luxury cars (minimum of 5 cars), coaches, boats, aircrafts etc., by tour operators approved by the State/Central Department of Tourism
  • Construction of structures like koothambalam/auditorium etc., by schools/institutions teaching kalaripayattu and traditional art forms of Kerala
  • Institutions teaching surfing, skiing, gliding, trekking and similar activities which will promote tourism
  • Ayurveda centres approved by the Department of Tourism
  • Building of traditional boats like chundan, iruttukuthy, veppu, kettuvallam and houseboats
  • Exclusive handicrafts emporia approved by the State/Central Department of Tourism

*The investment subsidy will be available for the new units and also for the expansion of the existing units

Projects Not Eligible For Subsidies/Concessions

  • Hotels within the Corporations will not be eligible for investment subsidy
  • Those units which enjoy any form of investment subsidy from any other department of the State/ Central Government will not be eligible for subsidy under this scheme

Electricity Tariff Subsidy*

  • For tourism units approved by the Govt. of India and the Govt. of Kerala
  • Applicable for the first five years from the date of approval
  • Fresh application forms should be submitted every six months to the Department of Tourism along with the certificate from KSEB

* Difference between the Commercial Tariff and the Industrial Tariff

Special Incentives for Pollution Control/Eco-Friendly Measures

An additional incentive of 15% of the investment, with a maximum ceiling limit of Rs. 5 lakhs is available for adopting pollution control facilities, rainwater harvesting, captive power generation and waste management measures.

Sources of Finance

  • Tourism Finance Corporation of India Ltd (TFCI)
  • Kerala State Industrial Development Corporation (KSIDC)
  • Kerala Financial Corporation (KFC)
  • Industrial Development Bank of India (IDBI)
  • Industrial Finance Corporation of India (IFCI)
  • Small Industries Development Bank of India (SIDBI)
  • Any Nationalized Bank
  • Co-operative Banks


State Assembly Building