23 October 2026
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Uttar Pradesh Launches ‘New Tourism Startup Units Scheme’ to Boost Investment, Innovation and Jobs

State to Offer Up to 25% Subsidy, Tax Benefits and Support for Innovative Tourism Models Like Capsule Stays, Caravan Units and Eco Tourism Projects
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Indian Masterminds Stories

Lucknow: The Uttar Pradesh government has launched the ‘New Tourism Startup Units Scheme’ to promote tourism-based entrepreneurship, attract investment, and generate employment opportunities across the state. The initiative aims to transform tourism into a strong startup ecosystem by encouraging innovative and experience-based projects.

Tourism Startup Scheme to Empower Young Entrepreneurs

The scheme, introduced by the state tourism department, is designed to help young entrepreneurs turn their ideas into viable businesses. Under this initiative, investors will receive benefits under the Uttar Pradesh Tourism Policy, including subsidies, grants, and other financial incentives.

The focus will be on technology-driven and experience-based tourism models that can enhance visitor engagement and boost the state’s tourism profile.

Read also: CM Yogi Adityanath Inaugurates Regional Agriculture Conference in Lucknow, Highlights UP’s Record Farm Growth

Innovative Tourism Models Planned Across Uttar Pradesh

The government is planning to develop several new and unique tourism concepts, including:

  • Theme-based “Habitat Houses”
  • Japanese-style pods and capsule stays
  • Regenerative tourism units focused on environmental conservation
  • High-tech caravan tourism units
  • Open-air “Star Bed” experiences

These models aim to offer modern, eco-friendly, and immersive tourism experiences while promoting sustainable travel.

Investment Proposals to Be Reviewed by State Committee

Investors have been invited to submit proposals for tourism projects under the scheme. These projects will be evaluated by the State Level Special Tourism Committee (SLSTC), which will decide on incentives and approvals.

The committee will ensure that only viable and impactful tourism projects receive government support.

Attractive Subsidy Structure for Investors

Tourism Minister Jaiveer Singh announced a structured subsidy system under the tourism policy to encourage investment:

  • ₹10 lakh to ₹10 crore investment: 25% subsidy (up to ₹2 crore)
  • Up to ₹50 crore investment: 20% subsidy (up to ₹7.5 crore)
  • Up to ₹200 crore investment: 15% subsidy (up to ₹20 crore)
  • Up to ₹500 crore investment: 10% subsidy (up to ₹25 crore)
  • Above ₹500 crore investment: 10% subsidy (up to ₹40 crore)

These incentives are designed to attract both small and large-scale investors into the tourism sector.

Additional Financial and Regulatory Benefits

Apart from subsidies, the scheme also offers:

  • 100% exemption on stamp duty
  • Waiver of land conversion and development charges
  • Additional 5% subsidy for women, Scheduled Caste (SC), and Scheduled Tribe (ST) entrepreneurs

These benefits aim to promote inclusive growth and encourage participation from diverse sections of society.

Tourism as a Key Driver of Employment in Uttar Pradesh

Officials said the initiative is expected to significantly boost employment generation and position tourism as a key driver of economic growth in the state.

By combining innovation, private investment, and policy support, Uttar Pradesh aims to develop a modern tourism ecosystem that creates jobs while enhancing visitor experiences.

State Pushes for Modern and Sustainable Tourism Growth

With the introduction of the New Tourism Startup Units Scheme, Uttar Pradesh is focusing on developing next-generation tourism infrastructure. The state aims to become a leading destination for innovative tourism models, sustainable travel experiences, and startup-led development in the sector.

Read also: UP CM Yogi Adityanath Inaugurates ₹1,055 Crore 497 Projects in Gorakhpur, Launches Eco Park and Urban Development Drive 


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