**Summary:**
The Ministry of Tourism provides central financial assistance to various hospitality and tourism institutes, including IHMs, FCIs, IITTM, ICI, NCHMCT, and PSUs, to enhance their capacity to meet the manpower needs of the tourism and hospitality industry. This assistance supports projects such as establishing new institutes, constructing hostels and staff quarters, campus development, building expansion/renovation, and equipment upgrades. In the fiscal year 2024-25, a total of Rs. 30.41 crore was allocated to these institutes through the Central Nodal Agency (CNA) for such projects.
The Ministry ensures proper fund utilization through a phased release approach: 40% upon land transfer and registration, subsequent tranches of 40% and 15% upon submission of Utilization Certificates (UCs) and progress reports, and a final 5% upon project completion and submission of all required documentation. UCs are required for 75% of previously released funds, accompanied by supporting accounts and physical progress reports. Funds are managed through a CNA, with implementing sub-agencies required to open zero-balance accounts in SBI. Fund release is linked to real-time utilization, and unspent balances must be deposited back into the CNA's account. An online Management Information System (MIS) is under development for tracking purposes. This information was provided by Union Minister for Tourism and Culture Shri Gajendra Singh Shekhawat in a written reply in Rajya Sabha. Contact: Sunil Kumar Tiwari, tourism4pibatgmaildotcom, Release ID: 2153603.
Key Entities Referenced
Ministry of Tourism: The government ministry responsible for tourism policy and implementation.
Central Financial Assistance: A scheme by the Ministry of Tourism to provide financial aid to hotel management and tourism institutes.
Institute of Hotel Management: Educational institutes focused on hotel management studies. Often referred to as IHMs.
Indian Institute of Tourism Travel Management: Educational institute focused on tourism and travel management. Often referred to as IITTM
National Council for Hotel Management Catering Technology: A council for hotel management and catering technology. Often referred to as NCHMCT
Public Sector Undertakings: Government-owned entities that may receive financial assistance.
Rajya Sabha: The Upper House of the Parliament of India, where information regarding the scheme was presented.
Gajendra Singh Shekhawat: The Union Minister for Tourism and Culture who provided the information about the scheme.
Ministry of Tourism
Scheme of Financial Assistance for Institutes
Posted On: 07 AUG 2025 4:14PM by PIB Delhi
The Ministry of Tourism, under the scheme of “Central Financial Assistance to the Institute of Hotel
Management (IHMs)/ Food Craft Institutes (FCIs)/ Indian Institute of Tourism & Travel Management
(IITTM)/ Indian Culinary Institute (ICI)/ National Council for Hotel Management & Catering Technology
(NCHMCT)/ Public Sector Undertakings (PSUs)” extends central financial assistance for the projects
including setting up of central/state IHMs, hostels, staff quarters, campus development works,
expansion/addition & alternation of building, replacement/up- gradation of equipment etc. with the objective
of making these institutes capable of generating manpower sufficient to meet the needs of the tourism and
hospitality industry, both quantitatively and qualitatively.
Under the scheme a total of Rs.30.41 crore was allocated to institutes via CNA during the past year i.e. 2024-
25 for projects including setting up, expansion and upgrading of institutes.
The Ministry ensures proper utilization of funds released in the following manner:
i. Phased Release of Funds: 1st tranche (40%) after land transfer, society registration, and other required
due diligence. Next tranches (40%, 15%) upon Utilization Certificate (UC) and progress report
submission. Final 5% after project completion and submission of all documentation (completion
certificate, display of credit, etc.).
ii. Utilization Certificate (UC) Requirements: UC for 75% of previous release with supporting accounts
and physical progress.
iii. Implementing Agency Accountability: Funds managed via Central Nodal Agency (CNA). Sub-agencies
(implementing agencies) to open zero-balance accounts in SBI. Drawing limit and fund release linked
to real-time utilization. Unspent balances must be deposited back into CNA’s account.
iv. Online Management Information System (MIS) under development for tracking.
This information was given by Union Minister for Tourism and Culture Shri Gajendra Singh Shekhawat in a
written reply in Rajya Sabha today.
***
Sunil Kumar Tiwari
tourism4pib[at]gmail[dot]com
(Release ID: 2153603)