Agro Tourism Villa Scheme

The Agro Tourism Villa Scheme is a component under the Chief Minister’s Elevate Program launched by the Government of Meghalaya which aims to employ, engage, and empower the youth of Meghalaya by promoting entrepreneurship and by providing easy access to credit through onboarding of various banks as financial partners of the program. To minimize the risks associated with the credit flow, Government is providing front end subsidy in the form of down-payment and backend subsidy in the form of EMI co-payment.

Through this program, the entrepreneurs including individuals, collectives, village organizations, various business entities and traditional institutions etc. will have easy access to various schemes on a single online portal. The program encompasses several sectors such as agriculture, horticulture, veterinary and animal husbandry, tourism, entertainment, sports, wellness, and any business venture of economic interest for the people of the State.

Scheme Details


In recent years, Meghalaya’s natural beauty, rich cultural tapestry, and vibrant festivals have attracted tourists globally, leading to a surge in tourist footfall. To meet this rising demand and promote high-value tourism, the Meghalaya government is investing in luxury tourist facilities and infrastructure. However, there’s a need to enhance accommodations to meet high-value tourists’ expectations and preserve the state’s heritage.

Scheme rationale:High-value tourists demand top-tier accommodations, which the current government homestay scheme, limited by a ₹20 lakh budget, fails to provide. To address this, the ‘Agro Tourism Villa Schemes’ are introduced, offering funding for projects up to ₹1.5 crore, making Meghalaya a more appealing destination.

By prioritizing upscale lodging, Meghalaya can attract more tourists, boost revenue, and ensure visitor satisfaction, maintaining its competitive edge in the tourism market.

The Scheme: Under this scheme, eligible individuals can receive a significant subsidy of 35% of the project cost (25% upfront and 10% as a co-payment of the EMI). This subsidy applies to projects ranging from ₹50 lakhs to ₹1.5 crore, with a maximum subsidy of ₹52.5 lakhs, incentivizing investments in villa-type accommodations.

To ensure a well-balanced and controlled implementation, the scheme initially limits participation to a maximum of 30 individuals in its inaugural year. The government prefers these villas to be developed in rural areas, scenic agricultural fields, orchards, or tourist attraction sites. Priority clusters have been identified through a rigorous exercise by the State Tourism department. This strategic focus on rural regions and picturesque destinations aims to foster sustainable tourism growth, uplift local communities, and showcase the state’s natural beauty and cultural heritage to a broader audience of travellers.

The objectives of the scheme are as follows:

  • Enhance Tourist Experience: 

Elevate the experience of high-value tourists by providing them with superior amenities and comfortable accommodations.

  • Stimulate Private Investment: 

Encourage private investment in villa-type accommodations through substantial subsidies.

  • Attract Discerning Travelers: 

Target high-value tourists, both domestic and international, by offering upscale accommodations.

  • Promote Sustainable Tourism: 

Foster sustainable tourism practices to responsibly preserve Meghalaya’s natural beauty and cultural heritage.

  • Boost Local Economy: 

Contribute to the local economy by offering quality accommodations that attract more high-value tourists and increase spending.

  • Drive Rural Development: 

Promote rural development by constructing villas in tourist sites, scenic agricultural fields/orchards, benefiting local communities and lesser-explored areas.

  • Showcase Meghalaya’s Beauty: 

Highlight Meghalaya’s unparalleled beauty and rich heritage to travellers, establishing it as an alluring destination.

  • Priority clusters:

Promote the development of Tourism in the priority cluster identified by the Tourism department

SchemeThe scheme aims to provide financial assistance to support the construction of Villas at key tourist attractions across Meghalaya, promoting tourism development and entrepreneurial opportunities within the State.
Who can apply?

1.    Individuals: Residents of Meghalaya are eligible to apply.

2.    Registered Entities: Societies/Cooperatives registered in Meghalaya can also apply.

Number of Villas

A total of thirty (30) villas will be constructed under this scheme.

(The Tourism Department have identified 14 priority clusters based on their tourism potential)

Nodal Department for the CM-ELEVATE ProgramPlanning, Investment Promotion & Sustainable Development Department
Nodal Department for the schemeTourism Department, Government of Meghalaya
Financial AidGovernment of Meghalaya
Partner banks for credit support

a.    Meghalaya Rural Bank (MRB)

b.    State Bank of India (SBI)

c.     HDFC Bank

d.    Northeast Small Finance Bank (NESFB)

Villa Design and Aesthetics

A design consultant or consulting firm (preferably local to Meghalaya) will be empanelled specifically for designing or enhancing the designs of the villas under the Agro Tourism Villa Scheme.

  1. The design consultant, in collaboration with the Tourism Department, will present sample model designs as the foundation for constructing luxurious villas.
  2. Entrepreneurs will initially propose basic design concepts for the villa-type tourist accommodations, which will undergo evaluation during the qualification process.
  3. Upon selection for the scheme, the Tourism Department will assign a design consultant to work with and enhance the initial design.
  4. The designs can also be tailored to suit the specific region and topography where the accommodations will be built, whether in rural areas, agricultural settings, or popular tourist sites.
  5. The villa designs will harmoniously blend ethnic elements with modern aesthetics, ensuring a balance between cultural authenticity and contemporary comfort.
  6. Preserving the inherent aesthetics of the location will be a primary focus in the design process.
  7. Sustainability will also be a key consideration, incorporating eco-friendly elements to enhance the beauty and minimize the environmental impact of the accommodations.

Note: The Tourism Department will cover the cost of design consultant/architects to assist in the villa designs.

Priority Clusters

The Tourism Department has identified priority clusters based on tourism potential, the need for government intervention in the region, and other factors. The indicative list of the 14 priority clusters along with the name of the villages are as follows:

Sl No.Cluster NameVillage
1Upper Shillong – Khatarshnong, EKHUpper Shillong/ 5th Mile, Demthring, Dkong Dam, Lumkyntung, Mawphlang, Mawkdok, Umdiengoh, Kshaid, Mawrah
2Sohra-Shella, EKHLaitryngew, Nohkalikai, Cherrapunjee, Mawmluh, Nongriat, Laitkynsew, Mawsmai, Sohbar, Tyrna, Siej
3Smit – Mawkynrew, EKHSmit, Laitlum & Rasong, Nongjrong, Syntung, Nohron, Rapleng
4Pynursla – Pongtung, EKHWahkhen, Pynursla, Nongblai, Pynter, Wahlyngkhat, Mawbyrne, Mawlam, Shilliang Jashar, Mawkyrnot, Pongtung, Tangmang
5Mawsynram, EKHSyntein, Mawlyngbna, PhlangwanbroiMawsynram
6Nokrek, WGHDarichikgre, Selbalgre, Rombagre, Chinabat, Sakaladuma, Chandigre, Daribogkre, Silsotchigre
7Resubelpara, NGHResubelpara, Mehndipathar, Adokgre, Nakachigong, Rongma Gitil, RadiNokat
8Siju, SGHSiju, Rongdong, Siju Adura, Rongong, Rongsu
9Jakrem, SWKHNongnah, Jakrem, Mawkyrwat, Ranikor
10Umsning-Umden, Ri BhoiUmden, Umling, Sohliya, Umsning
11Umngot,WJHDawki, Shnongpdeng, Umsyiem, Darrang
12Jowai – Nartiang, WJHMookyndur, Jowai, Thadlaskein, Nartiang
13Umiam, Ri-BhoiUCC, Mawlyndep upto Mawmaram
14Kynshi, WKHNongstoin, Nongkhnum, Umkrem, Mawphanlur


  • The priority list may be updated as needed by the Tourism Department, and notifications will be provided accordingly.
  • The list of the villages may not be extensive, hence, villages that falls in the 14 clusters will be considered.


Individual entrepreneurs
  1. Any resident of Meghalaya, above the age of 18 years and below 58 years.
  2. Applicant should not be a defaulter at any financial institution.
  3. Assistance under the scheme is available only for new projects sanctioned specifically under the scheme.
  4. The entrepreneur should own the land for the project and should possess valid land documents. In case the applicant does not possess own property, a notarized lease agreement for minimum period of 15 years needs to be obtained.
  5. Applicant should not be a government employee.
  6. Only one person from one family is eligible for obtaining financial assistance for setting up of projects under this Scheme and should not be an immediate family member of a government employee.
Registered Entities
  1. Any registered entity such as societies/cooperatives etc. involved with tourism related activities and legally registered with the government of Meghalaya are eligible to apply for the scheme.
  2. Must provide an incorporation Certificate or a registration certificate whichever is applicable.
  3. Should not be a defaulter at any financial institution.
  4. Any of the Members should not be a government employee or immediate family members of a government employee.

Application Process

Document Requirements

As proof of eligibility, the entrepreneurs are required to provide proof of their eligibility for the scheme by submitting the required documents mentioned below

IndividualsRegistered Entities
  1. A valid government photo identity with an address such as Aadhar Card, EPIC, Passport, PAN Card, Birth Certificate
  2. Passport size photo – 2 Nos
  3. Land documents
  4. Front page of KYC compliant Saving Accounts passbook
  5. Duly filled form, Annexure 1 attached.
  1. Incorporation/ Registration Certificate
  2. A valid government photo identity with an address such as Aadhar Card, EPIC, Passport, PAN Card, Birth Certificate of the President, and the Secretary
  3. GST certificate, if applicable
  4. Passport size photo – 2 Nos of President and Secretary
  5. Land documents
  6. Bank account statement for last 6 months, if applicable
  7. Duly filled form, Annexure 2 attached
  1. Tourism Department will be the implementing agency for the Scheme.
  2. State Level: Directorate of Tourism
  3. Coordinating Officers: District Tourism Officer (DTO) at the district level will help in identification of the entrepreneurs and verification of location and handholding in application process, wherever required.
  4. State level Committee: A committee will be constituted to oversee the progress of the scheme’s implementation.

Every recipient of the program must consent to the conditions set by the Tourism Department of the Meghalaya Government, which will be determined by the subsequent criteria. A three-way contractual arrangement will be signed involving the Tourism Department, the Bank providing the financing, and the Entrepreneur.

  1. Entrepreneur will not transfer the ownership of the project or the establishment which includes the building and the land on which it is built to any person within the contract term of 15 years without being issued a ‘No Objection Certificate (NOC)’ or release letter jointly signed by Department of Tourism, Government of Meghalaya, and the Bank.
  2. Entrepreneur must repay the Loan on time as per the bank guidelines.
  3. The Villas should maintain minimum standards in terms of infrastructures, service, and overall guest experience. Besides accommodation the villa should have proper dinning and recreational area.
  4. The villa should remain operational for the tenure of the scheme i.e., a minimum period of 15 years.
  5. Tourism Department, Government of Meghalaya holds the authority to terminate the contract in the event where the entrepreneur fails to adhere to the stipulated terms and conditions outlined in the contract agreement.
  6. In the event of contract agreement termination by the Tourism Department, the department is empowered to request the reimbursement of all monetary benefits provided to the entrepreneur. Should the entrepreneur default on the required payments, they will be categorized as a defaulter and shall not be eligible for any other benefits of the government in the future.

Financing Plan

Financing of the Villa to the selected entrepreneurs of the scheme shall be done through and empanelled bank in a credit linked subsidy model.


Evaluation of the shortlisted applications:
  1. The Tourism Department will constitute an evaluation committee for shortlisting the entrepreneurs.
  2. Primary criteria for evaluation of the entrepreneur will be,
    • Availability of the land, location, and tourism potential
    • Concept including design concept/Business Plan
    • Number of Jobs expected to be created, including local job
    • Environmental sustainability and waste management plans
    • Innovation and Uniqueness
    • Benefit to the community
Personal interviews:

After the initial assessment of the applicants through the documentation provided during the application, the candidates will be shortlisted and called for a presentation cum interview. Based on these, the entrepreneurs will be shortlisted.

Note: The top 30 applicants based on the evaluation process will be awarded the grants of 35% of the Project cost capped at ₹1.5 Crores.

The Entrepreneur will be required to participate in a mandatory training program within six months following the loan sanction from the banks. This comprehensive training will cover various aspects, including hospitality management practices and bookkeeping. These training sessions will be a collaborative effort between the Tourism Department and established training institutes or renowned hotels within Meghalaya. The specific duration and content of the training course will be determined later by the Tourism Department, ensuring that it effectively equips entrepreneurs with the necessary skills for successful participation.

Employment Opportunity through the Scheme

With the creation of at least 30 Villas, it is expected that a minimum of 10 employment will be created per Villa. Hence, creating a minimum of 300 direct employment opportunity.

The boost in tourism through the scheme will also create hundreds of indirect employments. Thus, in total the programme is estimated to create at least 1,000 employment opportunities for the people of Meghalaya.

Economic benefit

Summary of the financing plan:

The figure above shows the overall summary of the financing of the project.

Financing Partners

Entrepreneurs can choose to go with any bank listed below to apply for loan based on their choice.

  1. Meghalaya Rural Bank (MRB)
  2. State Bank of India (SBI)
  3. HDFC Bank
  4. Northeast Small Finance Bank (NESFB)
  5. The Shillong Co-operative Urban Bank Ltd.
Loan Amount95% of the total cost of the project
Loan term15 years
Moratorium period18 months
Annual rate of interestInterest rates may vary by banks
 Quantum and Nature of Assistance:
  • Subsidy from Government

The total subsidy will be 35% of the total Project cost with a maximum project cost of ₹ 1.5 Cr (Rupees One Crores Fifty Lakhs). The subsidy will be divided into two parts

  1. 25% as upfront payment to the bank
  2. 10% as EMI support, where the government co-pays the EMI with the bank for a period of 24 months after the moratorium period of 18 month.
  • EMI support: 

To reduce the burden of the operational cost on the entrepreneur in the first three and half years of business, Government of Meghalaya will support the entrepreneur by paying 10% of the total project cost (not exceeding Project cost of Rs 1.5 Crores) over that period of 24 months after the moratorium period of 18 months.

  • Beneficiary Contribution:

The entrepreneur will contribute a minimum of 5% of the project cost (Can contribute more as per preference)

Bank disbursal of Loan

The banks shall disburse the loan in three instalment or tranches in the ratio 40:30:30 over a period of 18 months (moratorium period) during the construction phase. The table below shows the details of bank loan disbursement and checks/verification required.

Sl NoParticularsDetails
1Number of tranchesThree
2Percentage of each tranche


(Phase wise manner depending on the construction works as per estimates)
The above is just an indicative arrangement. Disbursement will depend on the project report and on a case-by-case basis

3Criteria to receive the next tranchesSubmission of utilization certificate along with the necessary cash memos/receipts along with photographs of the unit
4Verifications or checkPost sanction after utilisation of every tranche
5Any other relevant informationAll terms and conditions should be complied as per scheme and post sanction papers (such as cash memos/receipts, insurance papers & all other related papers) to be submitted.

Illustration for payment terms

Let’s consider an example to understand the various financial components.

Sl NoComponentsValues
1Total Project Cost1,50,00,000
2Entrepreneur’s Contribution (5%)7,50,000
3Loan Amount (95%)1,42,50,000
4Total Subsidy (a+b):52,50,000
aFront End (25% of Project Cost)37,50,000
bEMI Support (10% of Project Cost)15,00,000
5Annual Interest Rate (say)9%
6Term of Loan (Years)15
7Total monthly EMI1,53,057


  1. The total project cost considered for the table above is for Rs 1,50,00,000 (One Crore fifty lakhs). The EMI and other amounts will change according to the project cost. 
  2. Annual interest rate may differ at the time of sanction of the loan and prevailing rate of the bank will be applicable.

The tables below show the details of shared EMI between the Government of Meghalaya (GoM) and the entrepreneur.

PayeeEMITotal EMI
1-18 months19-42 months16-27 months
Entrepreneur₹ 0₹ 90,557₹ 1,53,057₹ 2,60,50,193
GoM₹ 0₹ 62,500₹ 0₹ 15,00,000
Total₹ 0₹ 1,53,057₹ 1,53,057₹ 2,75,50,193
Financial Aid Disbursement
  1. Within 15 days of the bank sanctioning the loan, the 25% upfront subsidy of the GoM will be credited to the entrepreneur’s loan account.
  2. The remaining 10% of the subsidy will be contributed as EMI over a 2-year (24-month) period, following an 18-month moratorium or upon the successful completion and certification of the project by the Tourism Department, whichever comes first.
  3. EMI support is contingent on
    • Aesthetic Villa Creation as per guidelines.
    • Successful construction completion and certification by Tourism Department.
    • Timely EMI payments by entrepreneur for continued government co-payment.

Economics of owning a Villa

The following are the assumptions taken for the calculation

  • Number of Rooms: 6 Nos
  • Average room rate: Rs 5,000
  • Occupancy Rate: 60%

Note: As per the assumptions, the Entrepreneur begins generating positive income in the second year (after an 18-month construction period), and the breakeven point is reached in the tenth year (nine years after initiating EMI repayments).


The Agro Tourism Villa Scheme is a program launched by the Government of Meghalaya as a part of the Chief Minister’s Elevate Program. It aims to promote entrepreneurship and provide financial support for the development of luxury tourist accommodations in the state.

The scheme is implemented by the Tourism Department of the Government of Meghalaya.

The main goal of the scheme is to promote entrepreneurship, stimulate private investment in high-value tourist accommodations, and boost sustainable tourism in Meghalaya.

The scheme benefits Meghalaya by attracting high-value tourists, creating jobs, boosting the local economy, and showcasing the state’s natural beauty and cultural heritage.

The overall program which is the CM Elevate program covers various sectors, including agriculture, horticulture, veterinary and animal husbandry, tourism, entertainment, sports, wellness, and any business venture of economic interest for the people of the state. Please refer each scheme under the Programme for more detailed information.

Yes, the scheme is open to residents of Meghalaya, including individuals, collectives, village organizations, business entities, and traditional institutions.

You can get more information about the scheme by contacting the Tourism Department of Meghalaya or visiting the official government website. You may also go through the scheme guideline available in these portal for the detailed information on the scheme.

While the scheme primarily focuses on supporting entrepreneurs, it indirectly benefits tourists by providing them with superior accommodations and enhancing their overall experience in Meghalaya.


Eligible applicants include individuals, registered entities (such as cooperatives and societies), and other organizations involved in tourism-related activities in Meghalaya.

Individual entrepreneurs must be between 18 and 58 years of age.

No, government employees are not eligible to apply for the scheme.

No, only residents of Meghalaya are eligible to participate in the scheme.

Registered entities, such as cooperatives and societies, must be legally registered with the government of Meghalaya and should not have any defaulters among their members.

Yes, only one person from one family is eligible to obtain financial assistance for setting up projects under this scheme, and they should not be an immediate family member of a government employee.

To prove eligibility, individuals and entities need to provide various documents, including government-issued photo identification, land documents, registration certificates, and other relevant documents.

An applicant can only apply for one project.

Planning, Investment Promotion & Sustainable Development Department, Government of Meghalaya,