Scheme of Financial Assistance to IHMs/FCIs/IITTM/ICI/NCHMCT/PSUs
This Ministry of Tourism scheme provides Central Financial Assistance to State Governments and UT Administrations to build or expand Institutes of Hotel Management (IHMs), Food Craft Institutes (FCIs), and branches of national institutions like IITTM, ICI, and NCHMCT. Grants cover construction, equipment purchase, and hostel facilities. State/UT Governments apply by submitting a Detailed Project Report to the Ministry of Tourism.
About This Scheme
This Ministry of Tourism scheme provides Central Financial Assistance to State Governments and UT Administrations to build or expand Institutes of Hotel Management (IHMs), Food Craft Institutes (FCIs), and branches of national institutions like IITTM, ICI, and NCHMCT. Grants cover construction, equipment purchase, and hostel facilities. State/UT Governments apply by submitting a Detailed Project Report to the Ministry of Tourism.
Full official description
The scheme "Scheme of Financial Assistance to IHMs/FCIs/IITTM/ICI/NCHMCT/PSUs" was launched by the Ministry of Tourism, Government of India. The scheme aims to extend Central Financial Assistance for various developmental projects related to tourism, hospitality, and allied sectors. The scheme provides Central Financial Assistance for setting up new Institutes of Hotel Management (IHMs), Food Craft Institutes (FCIs), and new Centres/branches of Indian Institute of Tourism & Travel Management (IITTM), Indian Culinary Institute (ICI), and National Council for Hotel Management & Catering Technology (NCHMCT). It also covers expansion, addition, alteration of buildings, and replacement/upgradation of equipment for existing institutions like Central IHMs, Centres of IITTM, NCHMCT, and ICI Centres.
Benefits
- New State IHM: up to ₹12.5 crore (₹10 crore construction + ₹2.5 crore equipment + up to ₹4 crore optional hostel)
- New FCI: up to ₹5.5 crore (₹4.35 crore construction + ₹1.15 crore equipment + ₹2 crore hostel)
- IHM in existing building: up to ₹6 crore construction + ₹2 crore hostel + ₹2 crore equipment
- Applied Training Centre (ATC): up to ₹5 crore for construction
- PSU Promotional Initiative: one-time grant up to ₹2.4 crore (₹60 lakh civil + ₹1.8 crore equipment)
Who Can Apply (Eligibility)
- Applicant must be a Society formed by Central/State Government or UT Administration, registered under the Societies Registration Act 1860
- May also be an autonomous central government society (IITTM, NCHMCT, or ICI)
- For new IHM: minimum 5 acres of developed, encumbrance-free land required (2 acres in hilly areas or 6 major metros)
- For new FCI: minimum 3 acres of land required (1 acre in hilly areas or major metros)
- State must commit to providing electricity, water supply, and sewerage
- Institutes must follow NCHMCT academic and admission norms
How to Apply
Step 1:**** Society Formation, Registration, and Land Commitment
- 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 2:**** Detailed Project Report Submission
- 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 3:**** Approval and Constitution of Monitoring Bodies
- 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.
Frequently Asked Questions
If a State Government intends to upgrade an existing Food Craft Institute into a State Institute of Hotel Management, what mandatory administrative steps must be taken regarding the existing society structure?
The State Government must dissolve the original Food Craft Institute Society and then form and register a new Society specifically in the name of the State Institute of Hotel Management under the Societies Registration Act 1860.
What is the minimum acceptable area of developed land, free from all encumbrances, that a State Government must transfer for setting up a new Institute of Hotel Management?
The State Government or Union Territory Administration must transfer a piece of developed land, free from all encumbrances, measuring not less than 5 (five) acres.
What necessary documentation concerning property ownership must accompany the initial proposal when seeking assistance to set up a new Institute of Hotel Management?
The proposal must be accompanied by the land transfer documents showing that the developed land has been transferred specifically into the name of the Institute of Hotel Management Society.
If difficulties arise in officially transferring the required land to the Society, what must the applicant government provide to the Central Government to proceed with the proposal?
The reasons explaining the difficulties in transferring the land to the Society must be formally recorded in writing and subsequently found acceptable by the Central Government.
What specific legal requirements must a governmental body or administration meet to qualify its society for financial assistance under these guidelines?
The applicant must be a Society formed by the Central Government, State Government, or Union Territory Administration, which is registered under the Societies Registration Act 1860.
When applying for the establishment of a new Food Craft Institute by a State Government or Union Territory Administration, what is the mandatory minimum acreage requirement for the developed land?
The State Government or Union Territory Administration must transfer a piece of developed land, free from all encumbrances, measuring not less than 3 (three) acres to the Food Craft Institute Society.
If a Central Institute of Hotel Management wishes to construct an Applied Training Centre, what is the minimum land prerequisite for the proposal to be considered for funding?
The proposal will only be considered if the Institute already has 2 (two) acres of surplus land available, or if the State Government provides the additional land required for the purpose.
Are there special considerations or preconditions for receiving financial assistance if a State Institute of Hotel Management is intended to be housed within a pre-existing governmental building?
Yes, financial assistance is admissible provided the existing building is certified as suitable for housing the Institute of Hotel Management by the National Council for Hotel Management & Catering Technology.
What is the minimum required size for developed land when setting up a new Food Craft Institute, if the proposed location is within the notified hilly areas or metropolitan Urban Agglomerations?
For a Food Craft Institute set up in hilly areas or the six classified large Urban Agglomeration cities, a developed piece of land measuring not less than 1 (one) acre would be sufficient.
When proposing a new Centre for institutions like the Indian Culinary Institute or National Council for Hotel Management, what minimum land size must the State Government commit to providing?
The State Government or Union Territory Administration concerned must transfer a piece of developed land, free from all encumbrances, measuring not less than 5 (five) acres.
What specific administrative action related to the proposed society must be finalized before the Central Government can even begin considering financial assistance for a new Institute of Hotel Management?
Central Financial Assistance will only be considered after the Institute of Hotel Management Society has been officially registered under the Societies Registration Act 1860 by the relevant government body.
If the transfer of land directly into the Institute of Hotel Management Society’s name is administratively challenging or legally restricted, what alternative arrangement is acceptable?
The land must be clearly demarcated for the Institute of Hotel Management and must be in the possession of the concerned State Government or Union Territory Administration, specifically under the name of the Tourism Department.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- ##### ***During Application***
- Detailed Project Report (to Be Submitted by the State Government).
- Society Registration Document Under the Societies Registration Act 1860 (for IHM/FCI/SIHM).
- Land Transfer Documents in the Name of the Society.
- Written Record of Reasons for Difficulties to Transfer the Land to the Society (if Land Not Transferred to Society).
- Undertaking Regarding Adherence to Academic/Admission Norms Prescribed by National Council for Hotel Management & Catering Technology (NCHMCT) (for IHM/SIHM Setup).
- Certification of Suitability of the Building by National Council for Hotel Management & Catering Technology (for Setting Up IHM in Existing Building, After Site Inspection).
- Proposals for Additions/Alterations/New Components with Complete Details Along with Cost on Each Component, Duly Approved by the Building Committee and Board of Governors (for Projects with Central Financial Assistance from Ministry of Tourism).
- ##### ***During Fund Disbursal***
- Award of Contract by the Implementing Agency (Required for Release of First Installment).
- Utilization Certificate (UC) of at Least 75% of the Previous Installment(s).
- Supporting Documents Like Physical Progress, Expenditure Statement, Audited Accounts (to Accompany Utilization Certificates).
- Justification for Additional Funds Due to Cost Escalation, With Approval of the Building Committee and Board of Governors (if Applicable).
- Completion Certificate (Required for Final 5% Installment).
- Documentation Regarding Display of Credit (Required for Final 5% Installment).