Uttarakhand homestay scheme: Govt is paying Rs 15 lakh to start a tourism business, check eligibility and how can apply

Uttarakhand residents living in rural and hilly areas can turn their homes or existing buildings into homestays under the Deen Dayal Upadhyay Grah Aawas (Home-Stay) Vikas Yojana. The scheme provides financial assistance to eligible residents who take loans to construct or upgrade homestays, with higher subsidy support available for projects in hilly areas.

Under the scheme, beneficiaries in hilly areas can receive a subsidy of up to 50 percent of the project cost, subject to a maximum of Rs 15 lakh. They can also get an interest grant of up to Rs 1.50 lakh for the first five years. In plain areas, the subsidy is limited to 25 per cent of the project cost, with a maximum of Rs 7.50 lakh, while the interest grant can go up to Rs 1 lakh for the first five years.

The beneficiary is required to contribute 12.5 percent at the time of taking the loan. The subsidy is available only when the applicant takes a loan. Financial assistance can also be used for upgrading existing buildings through extension, renovation, improvement and construction of toilets.


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Who is eligible for the Uttarakhand homestay scheme?

The scheme covers homestay construction across Uttarakhand, except areas falling under Municipal Corporations and Municipalities. Applicants must be natives of Uttarakhand.

The building owner must live in the property with their family. A homestay can have a minimum of one and a maximum of six guest rooms. Once a new homestay is constructed or an existing property is renovated, it must be registered with the Uttarakhand Tourism Development Council.

Buildings constructed or developed in the traditional hill-style architecture are given preference under the scheme.

Documents required for the homestay scheme

Applicants need an Aadhaar card and an Aadhaar-linked mobile number for registration. Other documents include a date of birth certificate, an educational qualification certificate where applicable, a permanent residence certificate and documents establishing ownership of the land or building.

Applicants must also submit a building layout plan or angan plan and a written certificate from the Pradhan regarding the non-availability of land in the municipality.

A No Objection Certificate from the fire department is required for purchasing fire extinguishers. Applicants must also provide map approval from the authorised department or institution. SC/ST/OBC and ex-servicemen applicants need to submit the relevant certificate, where applicable.

How to apply for the Uttarakhand homestay subsidy

Applications have to be submitted online through the Uttarakhand government portal under the Deendayal Upadhyay Griha Awas (Homestay) Vikas Yojana. Registration requires an Aadhaar card and an Aadhaar-linked mobile number, after which applicants must upload the required documents.

Once submitted, the application is forwarded to the district tourism development officer concerned. The officer schedules a meeting of the committee headed by the district magistrate and calls the applicant for an interview.

If the committee finds the proposal satisfactory, the application is forwarded online to the bank selected by the applicant for the loan. The bank then begins the loan approval process. After the loan is sanctioned, the bank informs the Tourism Officer and credits the loan amount to the applicant's account.

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What happens after construction or renovation?

After completing the construction or renovation, the applicant has to submit a written notice to the Tourism Officer confirming that the project has been completed. A newly constructed homestay must then be registered.

The district tourism development officer and the concerned bank branch manager jointly inspect the property. Once the project completion is confirmed and the inspection report is submitted, the homestay can start hosting visitors.

The approved subsidy is subsequently transferred by the department directly to the bank account linked to the loan.