Uttarakhand homestay scheme: Who can get up to Rs 15 lakh subsidy and how to apply

Beneficiaries can get a subsidy of up to 50 per cent of the project cost, subject to a maximum of Rs 15 lakh, along with an interest grant of up to Rs 1.50 lakh for the first five years.

For many people living in Uttarakhand’s rural and hilly areas, turning an existing house or building into a homestay can provide an additional source of income while also supporting tourism in the state.

However, the cost of constructing or upgrading a property can be a challenge for local residents. To support such projects and promote rural and eco-tourism, the Uttarakhand government launched the Deen Dayal Upadhyay Grah Aawas (Home-Stay) Vikas Yojana.

Benefits

The scheme provides financial assistance to permanent residents or natives of Uttarakhand who take a loan for constructing a homestay. In hilly areas, beneficiaries can get a subsidy of up to 50 per cent of the project cost, subject to a maximum of Rs 15 lakh, along with an interest grant of up to Rs 1.50 lakh for the first five years.In plain areas, the subsidy is up to 25 per cent of the project cost, subject to a maximum of Rs 7.50 lakh. Beneficiaries can also receive an interest grant of up to Rs one lakh for the first five years. The beneficiary’s contribution at the time of availing the loan must be 12.5 per cent.The subsidy is available only when a loan is taken. Assistance is also available for upgrading old buildings, including extension, renovation, improvement and construction of toilets.

Eligibility and documents required

The scheme is available for homestay construction across Uttarakhand, except areas falling under Municipal Corporations and Municipalities. The applicant must be a native of Uttarakhand.The building owner must reside in the building with their family and can construct a minimum of one and a maximum of six guest rooms. After construction of a new homestay or renovation of an existing one, the property must be registered with the Uttarakhand Tourism Development Council.

Preference is given to buildings constructed or developed in traditional hill-style architecture.Applicants need an Aadhaar card and Aadhaar-linked mobile number for registration. Other required documents include a date of birth certificate, educational qualification certificate, if applicable, permanent residence certificate, land or building ownership documents, building layout plan or angan plan, and a written certificate from the Pradhan regarding non-availability of land in the municipality.Additionally, applicants must provide a No Objection Certificate from the fire department for purchasing fire extinguishers, map approval from the authorised department or institution, and an SC/ST/OBC/Ex-servicemen certificate, if applicable.

Application process

Applicants must apply online through the Uttarakhand government portal under Deendayal Upadhyay Griha Awas (Homestay) Vikas Yojana. Registration requires an Aadhaar card and an Aadhaar-linked mobile number, followed by submission of the required documents.After submission, the application is forwarded to the district tourism development officer of the concerned district. The officer schedules a committee meeting under the chairmanship of the district magistrate and calls the applicant for an interview.If the committee finds the proposal satisfactory, it is forwarded online to the bank from which the applicant intends to take the loan. The bank then begins the loan approval process.

Once the loan is approved, the bank informs the Tourism Officer and credits the loan amount to the applicant’s account.After construction or renovation is completed, the applicant must submit a written notice to the tourism officer confirming completion of the project. A new homestay must then be registered. The district tourism development officer and the relevant bank branch manager jointly inspect the property.Once project completion is confirmed and the inspection report is submitted, the homestay can begin hosting visitors. The department then transfers the approved subsidy directly to the bank account associated with the loan.