21 October 2026
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Yogi Government Launches Farm Stay Tourism Scheme in UP to Boost Rural Economy, Subsidies Worth Rs. 40 Crore to Attract Investors

Yogi government launches farm stay tourism scheme in UP, offering subsidies and tax exemptions to boost rural economy
Indian Masterminds Stories

In a pioneering move, the Uttar Pradesh government under Chief Minister Yogi Adityanath has invited proposals for setting up farm stay accommodations across the state. This initiative, led by the Department of Tourism, is expected to significantly boost rural tourism and provide a unique countryside experience to both domestic and international tourists.

Also Read: Uttar Pradesh Vision 2047: CM Yogi Adityanath Charts Roadmap for $6 Trillion Economy, Rural Development & Education

Dedicated Farm-Stay Units to Enhance Rural Experiences

Tourism Minister Mr. Jaiveer Singh stated that the farm stay units will be constructed on or near agricultural land, entirely separate from the owner’s residence. Each unit will feature a minimum of two rentable rooms and ample open space, providing a comfortable and immersive rural experience.

Up to Rs. 40 Crore in Subsidies for Investors

The government has announced a capital subsidy of up to Rs. 40 crore to encourage investment in farm stay accommodations. This substantial financial support aims to attract private players, hospitality chains, and agri-tourism enthusiasts to invest in the sector.

Mandatory Rural Activities to Enrich Tourist Experience

Each farm stay will be required to provide hands-on rural activities such as agriculture, dairy farming, horticulture, fisheries, and farm tours. These experiences are designed to give visitors an authentic taste of rural life and culture, thereby transforming entire villages into vibrant tourist destinations.

Interest Subsidy and Tax Relief to Attract Investments

A five percent interest subsidy will be offered on bank loans up to Rs. 5 crore, with a cap of Rs. 25 lakh per investor per year for a period of five years. Additionally, the government will offer 100 percent exemptions on stamp duty, land conversion fees, and development charges, drastically reducing the cost of investment.

Policy Amendments to Ease Land Lease Norms

To facilitate land availability for farm stays, the state is set to amend the UP Revenue Code, 2006. The current restriction, which considers an individual’s existing landholding while granting new leases, will be relaxed. A consensus has already been achieved at the policy level, removing a key bottleneck in the execution of the farm stay initiative.

Tourism as a Pillar of Rural Development

This initiative is part of a larger effort by the state government to promote sustainable development through tourism. By linking rural livelihoods with tourism, the government aims to create jobs, increase farmer incomes, and provide villages with a new identity in the tourism landscape.

Also Read: UP: CM Yogi Adityanath Hands Over 1,134 Appointment Letters, Highlights 8.5 Lakh Govt Jobs and Clean Recruitment in Lucknow


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