Meghalaya Motorcaravan Scheme

Motorhome Meghalaya 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 a number of 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.

Download the scheme guidelines

Scheme Details

About

With the growing demand of adventure, wildlife, pilgrimage, and eco-tourism, the accommodation needs of the tourists are now shifting towards forest edges, riverbanks, nearby waterfalls, and on the trails of tribal hamlets. Caravan tourism can meet such tourists’ demands at places where permanent constructions are not feasible or permissible. With caravan tourism, the tourists can enjoy their journey without relying on hotels or motels and stay where no such facilities are available. It’s been observed that the caravanning is fast gaining popularity and becoming an important leisure activity across the world. 

Meghalaya has immense potential to become one of the most preferred tourist destinations for caravan tourism. The state is graced with gift of nature, endowed with magnificent landscapes, cascading waterfalls, deep gorges, diverse flora and fauna, and crystal-clear water bodies. Encouraging sustainable tourism without affecting the fragile nature of the tourist sites will ensure that the ecological balances are not disturbed or degraded in any way. Promotion of caravan tourism is another such step by the government towards environmental stability and long-term economic benefits.

To cope with the rising demand and transition in tourist preferences, especially in the post-pandemic era, Government of Meghalaya has planned to introduce motorcaravans in the state. Tourists can have a once in a lifetime experience which is closest to nature, luxurious and involves minimum human contact by promising the visitors a safe escapade.

In this regard, ‘Motorhome Meghalaya Scheme’ has been launched to invite applications from entrepreneurs to buy rigid caravans, also known as motor homes or campervans or motorcaravans. Through this scheme, 50% financial aid on the project cost will be provided in the form of upfront payment towards capital support and EMI c0-paymnet as operational support.

Entrepreneurs with experience in the tourism sector are invited to submit their applications based on the eligibility criteria mentioned in the document. motorcaravans.

Objectives of the scheme

  • Economic growth of the state:

The scheme is envisaged to bring economic growth to the state through encouraging youths to engage in economic generation activities in tourism and other sectors which are indirectly connected to tourism such as agriculture, handicrafts, food and hospitality industry etc. Tourism brings revenue to the state through spendings by tourists on food, accommodation, transportation and buying locally produced products as souvenirs etc.

  • Increase entrepreneurship:

Along with the entrepreneurship being promoted in tourism transportation sector through the scheme, overall development of the sector will encourage small businesses such as restaurants, souvenir shops and entertainment.

  • Increase potential of the state as top tourist destination

The scheme is aimed to enhance the attractiveness and potential of the state as a preferred tourist destination and put Meghalaya on the tourist Map of the World

  • Promote alternative tourism

Motorcaravans will provide visitors with a customizable, luxurious, private, and safe travel experience, as well as to showcase the unique ecology and culture of Meghalaya to the visitors.

  • Promote sustainable tourism

To reduce the excessive concentration of tourists at a place in the state and thereby reduce unsustainable tourism

  • Training to the operators

Through this scheme, the operators will be provided with customer service skills which will include communication skills, industry knowledge, conflict resolution and basic first aid.

  • Create livelihood opportunities.

Boosting tourism in the state will create jobs in variety of sectors such as hospitality, transportation, restaurants, and entertainment. This can reduce unemployment and stimulate local economics.

Scheme

50% financial aid on the total project cost and maximum up to 25 Lakhs to selected entrepreneurs involved in the tourism sector and additional support such as trainings to the operator. The project cost includes cost of the vehicle and cost of building a caravan from a recognized and certified caravan maker/manufacturer in India.

Who can apply?

  1. Individual entrepreneurs from Meghalaya
  2. Any registered entities from Meghalaya such as tour operators/travel agents/tourist transport operators etc. registered as well as recognized with Department of Tourism, Government of Meghalaya.
  3. Any unregistered but recognized entities from Meghalaya such as SHGs, Village Organizations, traditional institutions etc. involved with tourism sector.

Note: Applications from following shall not be ordinarily considered.

  1. Pressure groups and organizations that are primarily political in nature
  2. Government employees (currently employed or retired and drawing pension) and their dependents.

Nodal Department for the CM- ELEVATE

Planning, Investment Promotion & Sustainable Development Department

Nodal Department for the scheme

Tourism Department

Financial Aid

Government of Meghalaya

Partner banks for credit support

  1. Meghalaya Rural Bank (MRB)
  2. State Bank of India (SBI)

Eligibility

Individual applicants

Individuals who are permanent residents of Meghalaya are eligible for the scheme.

Eligibility criteria for Individual entrepreneurs:

  1. Must be above 18 years of age and below 58 years of age.
  2. A letter of certification needs to be provided from the Block Development Officer (BDO) to support the claim.
  3. Must have a valid driving license.
  4. Must provide valid government ID proof with an address such as Aadhar Card, Voter ID, Passport etc.
  5. Shall not be a credit defaulter from any bank.
  6. Government employees (currently employed or retired and drawing pension) and their dependents are ordinarily not considered.
  7. Only one member from a family is eligible for a subsidy. The ‘family’ includes self and spouse.

Registered entities

All recognized and registered tourism operator, tourism societies with Tourism Department, Government of Meghalaya can apply.

Eligibility conditions:

  1. should have experience in the tourism sector
  2. should not be a defaulter at any financial institution
  3. Must have minimum of 3 years of experience in the tourism service sector
  4. Must provide an Incorporation Certificate or a registration certificate whichever is applicable
  5. Shall not be a credit defaulter from any bank
  6. Pressure groups and organizations that are primarily political in nature shall not be ordinarily considered.

Unregistered entities

Any unregistered entity such as village organizations, shelf help groups, traditional communities etc.  based in Meghalaya can apply,

Eligibility criteria

  1. Must be involved with the tourism sector. A letter of certification needs to be provided from the Block Development Officer (BDO) to support the claim.
  2. Should not be a defaulter at any financial institution
  3. Pressure groups and organizations that are primarily political in nature shall not be ordinarily considered.

     

Submission requirements as proof of eligibility:
IndividualsRegistered entitiesUnregistered entities

Mandatory:

  • A valid photo identity with address which includes Aadhar Card, Voter ID, Passport and driving license.
  • Valid driving license preferably commercial

Optional:

  • Pan card, if available
  • Latest Bank account statement for minimum of  1 year, if available

Any other document as specified by the department and the partner bank.

Mandatory:

  • Incorporation or Registration Certificate whichever is applicable
  • Valid driving license of the driver preferably commercial
  • A valid photo identity with address of the President and Secretary which includes Aadhar Card, Voter ID, Passport and driving license

Optional:

  • GST certificate, if available
  • Pan card, if available
  • GST return for the year 2022-23, if available
  • ITR 2022-23, if available
  • Trade License copy, if available
  • Latest bank account statement for minimum of 1 year for the organization, if available

Any other document as specified by the department and the partner bank.

Mandatory:

  • A valid photo identity with address of the President and Secretary which includes Aadhar Card, Voter ID, Passport and driving license.
  • Valid driving license of the driver preferably commercial
  • Certification from the Block Development Officer (BDO) is needed to support the claim.

Optional:

  • Pan card of the President and secretary, if available
  • Latest bank account statement for a minimum of 1 year President and Secretary of the organization, if available

Any other document as specified by the department and the partner bank.

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

Minimum requirements for the Motor Caravans

The following infrastructural and technical components are desired for the motorcaravans:

  1. The caravans shall be single units comprising of accommodation facilities and propelling mechanism
  2. The ideal length of the motorcaravans shall be less than 8 meters
  3. The motorcaravans must be compliant with Motorcaravan Policy defined in AIS 124 by ‘Automotive Industry Standards Committee’. A copy of the policy can be found in the link, https://hmr.araiindia.com/Control/AIS/86201482519AM4_AIS-124_F.pdf
  4. The motorcaravans must have following minimum requirements:

    S.N.CriteriaMinimum requirements
    1Berth capacity
    1. Minimum of two people capacity
    2. Sleeping area may be converted from the seats
    2Kitchen
    1. Fridge
    2. Micro-wave oven
    3Toilet cubicle
    1. Sufficient freshwater storage
    2. Hand shower
    3. Facilities of hot as well as cold water
    4StorageEnough for tourist luggage
    5DiningTable which is rigidly fixed or may be designed to be easily removable.
    6Comfort and convenience
    1. Air-condition
    2. Audio / video facility
    3. Net Connectivity
    4. Complete charging system – external and internal.
    7CommunicationCommunication facility between the passenger and the driver
    8Privacy and safety
    1. Partition behind driver
    2. Satellite-based radionavigation system
    3. Fire extinguishers, one being near to the driver’s seat
    4. For details of type and minimum number of extinguishers, the AIS 124 Motorcaravan Policy to be adhered to.
    9Pollution and waste disposal
    1. Preferably Bharat Stage VI compliant vehicle
    2. Eco friendly waste treatment mechanism.

The Tourism Department shall evaluate only those applications which fulfil the following criteria:

  1. The entrepreneur shall be eligible as per the eligibility conditions mentioned above
  2. The entrepreneur shall have a minimum of three years of experience in the tourism service sector with a relevant documentary evidence
  3. The entrepreneur shall have adequate parking area dedicated for parking of each motorcaravan with proper access from the main road at the base location. The entrepreneur must provide a photograph and a plan of the area as evidence.

General guidelines

  1. Motorcaravan operator shall employ a well-trained driver and an assistant (if required) to travel with the guests, extending all necessary assistance and security to the guests
  2. On demand of the guest, motorcaravan operator should be able to provide a well experienced cook on payment basis to travellers along with the vehicle
  3. On demand of the guest, motorcaravan operator should be able to provide tourists guides with thorough knowledge on the state and the destinations
  4. Motorcaravan operator should be able to provide all the necessary medical assistance to the tourists upon request or demand
  5. Motorcaravan operator should be able to provide all necessary provisions, grocery, water, and other aids upon request
  6. Motorcaravans shall comply with all standards issued by Government of Meghalaya/ Government of India for caravans, tourism, and transport
  7. The motorcaravans shall be parked in the pre-designated parking areas or caravan parks approved by the Tourism Department
  8. If a parking area is proposed by the motorcaravan owner, the area must be pre-approved by the District Tourist Officer as per the guidelines issued by the Government of Meghalaya
  9. The base (proposed site for motorcaravan parking) of operation should be in the state of Meghalaya
  10. The motorcaravan should not be normally left idle or non-operational for a continued period of 60 days. In case such a situation arises due to any unforeseen reason, the same should be informed to the Tourism Department
  11. In case of any accidents / breakdowns or any other issues leading to non-operation, the Tourism Department, Government of Meghalaya shall be informed
  12. The motorcaravan cannot be resold within the contract period of 10 years without prior permission from the Tourism Department, Government of Meghalaya
  13. The deployed driver should hold necessary valid license and training certificate from the Tourism Department to operate the motorcaravan.

Application Process

Entrepreneurs are required to complete the application process and submit all the required documents online on the CM-ELEVATE program portal.

Financing Plan

Entrepreneurs can choose to go with any of the mentioned bank as per their convenience.

    1. State Bank of India (SBI)
    2. Meghalaya Rural Bank (MRB)

Credit details.

Loan Amount50% of the project cost
Loan termMinimum of 5 years
Moratorium period6 months
Annual rate of interestVariable interest rates are applicable for partner banks.
 

Quantum and Nature of Financial Assistance: 

Down payment/Margin money support: 

Total down payment will be 50% of the price of the vehicle. Out of which,

  • 5% of the caravan price is to be paid by the entrepreneur to the bank
  • 45% of the caravan price will be paid by the Government of Meghalaya to the entrepreneur through the bank

EMI support:

To reduce the burden of the operational cost on the entrepreneur in the first year of business, Government of Meghalaya will support the entrepreneur by paying 5% of the of the vehicle distributed equally over a period of twelve months.

Additional support:

  1. The vehicles will be installed with GPS devices with 5 years of warranty. The cost of the GPS device will be borne by the government for one time only.
  2. The branding cost of the vehicle will be borne by the entrepreneurs and the same shall be included in the total project.


Maximum support to be provided from the government:

50% of the project cost Or Rs.25,00,000/- whichever is lower


Disbursement of finances:

Disbursement of subsidy by the government

  • Margin money/upfront support from the department will be transferred to the bank in favour of the entrepreneur within 15 days of receival of request from the bank.
  • EMI support will be submitted to the banks directly by the government.
  • However, EMI support will be provided only after the assessment of the following criteria which will be conducted by the district level committees formed by the department.
    1. Whether the vehicle is being used for the tourism purposes.
    2. Vehicle owner must submit the total number of trips done by the vehicle including the destinations visited, duration of the trip, customer details every month to the Directorate of Tourism.
    3. Vehicle is found to be in good condition as per the certificate of inspection by the government representative.

Completion of loan process by the bank

  1. Banks are required to complete the loan process within the specified period defined by the department upon contract with the banks.
  2. In case the entrepreneurs fail to pay their contribution of defined upfront amount (5% of the project cost) within the specified time after the announcement of the results, the allotment will be passed on to the next entrepreneurs in the waiting list.

Remittance of the vehicle amount to the dealers

Banks will remit the 100% of the sanctioned vehicle amounts to the dealers.

Evaluation

Shortlisting

The Tourism Department shall short list only the eligible applicants who meet the basic requirements as specified in this document. 

  1. Loan eligibility
  2. Meeting the requirements mentioned in the prequalification criteria.  
Detailed Project Report (DPR) Submission (only shortlisted participants)

Short-listed applicants will be invited for a presentation to present their Detailed Project Report which shall include the following components,

  1. Motor caravan design from an authorized caravan maker detailing the facilities
  2. Quotation from an authorised motorcaravan manufacturer with estimated price (including GST)
  3. Site feasibility (if not in the govt. recognized caravan park or caravan parking area)
    • A plan showing the dimension, road width
    • A satellite image (google earth or other maps) of the location 
  4. Project Proposal/ Concept
  5. Approach and Methodology for project execution including approximate budgetary estimate and suggestions / comments
Final selection 
  • The verification and scrutinization of the applications will be done by a State Level Screening Committee (SLSC) headed by Director of Tourism, Government of Meghalaya. The partnered banks’ representative will be part of the committee.
  • The Tourism Department will issue notification on the formation of the committee when required.

     

Mandatory training

  • Selected individuals must undergo through a mandatory training ‘Meghalaya Tourist Operator Training Program (MTOTP)’ conducted by a training agency identified by the Tourism Department, Government of Meghalaya.
  • Applicants will be required to score the minimum marks in the test conducted by the agency under supervision of Tourism Department, Government of Meghalaya to receive the Certificate of Completion of the MTOTP.
  • MTOTP will primarily cover the following areas
    • Communication and interpersonal skills
    • Knowledge of various tourist attractions in the state
    • Basic geographical knowledge of the state
    • Basic knowledge about various cultures and traditions of the state
    • Ability to perform basic first aid in case of emergency
    • Basic rules of road safety
    • Basic maintenance of the vehicle

Implementation Mechanism

Implementation Agencies
  1. Tourism Department, Government of Meghalaya is the implementation agency for the scheme. 
  2. State Level: Directorate of Tourism, Government of Meghalaya
  3. Nodal officers at district level: At district level, tourist officers will be the nodal officers.
Vehicle Purchasing Procedure

Support and monitoring of the vehicle

A monitoring cell, ’PRIME Tourism Vehicle Cell (Prime-TVC)’ will be created by Tourism Department, Government of Meghalaya to overlook and support the operations of the vehicle. The cell will

  1. recommend and promote the vehicles under the scheme to the visiting tourists
  2. collect suggestions and feedback from the tourists as per format to improve the services
  3. organize training programs for the vehicle owners/drivers under the scheme
  4. address grievances of the tourists
  5. address grievances of the vehicle owners.
    •  

Branding on the vehicle

  1. Any branding on the vehicle by the Tourism Department must not be altered
  2. Branding should be updated as notified by the department from time to time
  3. Any damage or future maintenance related to branding of the vehicles shall be borne by the entrepreneurs themselves on regular basis.
  4. Vehicles operating without proper branding will be liable for termination of the tripartite contract.
  1.  

Terms and Conditions of vehicle ownership

  1. Entrepreneur must sign after agreeing to the terms and conditions defined in the triparted contract to be signed at the time of sanctioning of the loan.  
  2. Entrepreneur must submit the total number of trips done by the vehicle including the earning per trip, customer details every month to the office of District Tourism Officer.
  3. Entrepreneur must maintain good care of the vehicle until the contract period has ended. Condition of the vehicles will be checked by a government-appointed representative before disbursement of the EMI paid. 
  4. GPS device attached to the vehicle must not be tampered with. Department will report any malfunction of the device to the beneficiary. The vehicle owner must report to the MHTC for the replacement of the same as per conditions defined in the agreement
  5. Any branding on the vehicle by the tourist department must not be altered and should be updated as asked by the department 
  6. Vehicle must be equipped with required First Aid kit and keep it up to date as mentioned in the agreement terms
  7. He/she must attend any training programs whenever provided by the government.
  8. Government has the right to terminate the contract and following which entrepreneurs are required to return the entire fund support received from the government with an additional annual interest charge and may also include legal action on the entrepreneurs for following reasons.
    • The entrepreneurs fail to match the conditions of the Triparted contract.
    • The entrepreneurs are found to be engaged in fraudulent /illegal/criminal activities and misuse of the vehicle for purposes other than those permissible by law.

Contract Termination conditions

Government has the right to terminate the tripartite contract, following which entrepreneurs are required to return the entire fund support received from the government with an additional annual interest charge and may also include legal action on the entrepreneurs for any of the following reasons.

  1. The entrepreneurs fail to match the terms and conditions defined in the Triparted contract
  2. Vehicles are not properly maintained
  3. Repeated complaints from the passengers/tourists
  4. Vehicles involve with repeated road safety violations
  5. Vehicles without proper branding
  6. The entrepreneurs are found to be engaged in fraudulent /illegal/criminal activities and misuse of the vehicle for purposes other than those intended, and which are permissible by law.

Economic Benefit

Illustration to understand the payment terms

Let’s consider the example to understand the various financial components of vehicle procurement.

ComponentsValues
Cost of the caravan₹ 50,00,000
Down payment by Entrepreneur (5%)₹ 2,50,000
Down payment by GoM (45%)₹ 22,50,000
Total Down payment (50%)₹ 25,00,000
Auto Loan Amount (50%)₹ 25,00,000
Annual Interest Rate10.7%
Term of Loan5 years

Disclaimer:                           

  1. The price of the vehicle is subjected to change from time to time based on ex-showroom price of the vehicle by the manufacturer, fabrication cost, registration cost, insurance etc.
  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 costs between GoM and entrepreneur on buying a vehicle.

EMI payment:

PayeeEMI
1-6 months7-18 months19-84months
Entrepreneur₹ 0₹ 26,223₹ 47,057
GoM₹ 0₹ 20,833₹ 0
Total₹ 0₹ 47,057₹ 47,057

FAQs

Motorhome Meghalaya Scheme is a credit linked scheme launched by Tourism Department under which financial aid of 50% on the cost of the vehicle is provided to the entrepreneurs to buy motorcaravans/motorhomes from a registered caravan manufacturer along with additional support in terms of trainings to the caravan operators. The scheme is intended to encourage alternative and adventure tourism in the state, promote sustainability and increase flow of tourists to the state. 

Motorhome Meghalaya Scheme is one of the 15 other bank linked schemes being launched under the CM ELEVATE programs.

Tourism Department is implementing the scheme at state level.

All recognized and registered tourism operator, tourism societies with Tourism Department, Government of Meghalaya. 

Any unregistered entity such as village organizations, self-help groups, traditional communities etc.  based in Meghalaya who are not registered with the Tourism Department, Government of Meghalaya. 

No age limit for the entrepreneurs.

There is no application fee.

Currently the last date of application for the first phase of the scheme is 31st of October 2023.

Entrepreneurs could contact the helpline team through a call or email for any queries related to application process. 

Entrepreneurs can also contact the Tourist Officers of the respective districts for any clarifications.

The application process will be processed and evaluated through a state level committee. The formation of the committee will be notified by the implementing agency from time to time.

You can send your grievance to the helpline number.

No changes will be applicable after submission. It is advisable that the applicants read and answer each question carefully and all changes should be made before submitting the application.

The scheme is offering 50% financial aid on the on-road cost of th vehicle in the form of 45% as upfront support and reaming 5% as EMI co-payment for twelve months.

You can receive 50% of the on-road cost of the vehicles which are listed under the scheme.

You can choose any of the partnered banks under the scheme based on your convenience and ease. The banks which are currently part of the scheme are Meghalaya Rural Bank (MRB) and State Bank of India (SBI)

The repayment period with 5 years inclusive of 3 months of moratorium period. 

Interest rates may vary depending on the bank you choose for credit support. You should inquire with the selected bank for specific interest rate details.

No, currently there are no pre-closure penalties for the loan.

The subsidy is disbursed to the entrepreneurs through financing partners under the scheme.

Trainings may be provided and the same will be notified by the Implementing Agency from time to time.

Yes, training provided by the Implementing Agency will be mandatory. 

Training locations will be notified by the Implementing Agency from time to time.

No, there is no fee associated with trainings provided by the implanting agency.

Duration of the trainings will be notified by the Implementing Agency from time to time.

You are requested to contact PRIME Hub or District Animal Husbandry and Veterinary Officer to inform about any challenges being faced at any stage of the project for any guidance and requirements.

The entrepreneurs are requested to propose parking sites across the state where the caravans can be parked overnight without any disturbances and compromising safety of the tourists onboard. The Tourism Department will do a site feasibility based on the proposals. 

Eligibility:

  1. Individuals from Meghalaya
  2. Any registered entities from Meghalaya such as tour operators/travel agents/tourist transport operators etc. registered as well as recognized with Department of Tourism, Government of Meghalaya.
  3. Any unregistered entity such as village organizations, self-help groups, and any other traditional institutions etc.  involved with tourism sector and  based in Meghalaya can apply.
  1. Non-permanent residents of Meghalaya are not eligible to apply.
  2. Additionally, applications from following shall not be ordinarily considered.
    • Pressure groups  and organizations that are primarily political in nature
    • Government employees (currently employed or retired and drawing pension) and their dependents.
  1. Only permanent residents of Meghalaya are eligible for the scheme
  2. Individuals must be above 18 years of age and below 58 years of age
  3. Recognized and registered tourism operator, tourism societies with Tourism Department, Government of Meghalaya
  4. Registered entities must provide an Incorporation Certificate or a registration certificate whichever is applicable
  5. Any unregistered entity such as village organizations, self-help groups and any other traditional institutions based in Meghalaya
  6. Must be involved with the tourism sector
  7. Must provide a photo of the parking space for the vehicle
  8. Must have a driver with a valid commercial driving license
  9. Must provide valid government ID proof with an address such as Aadhar Card, Voter ID, Passport etc.
  10. Shall be eligible for loan and shall not be a credit defaulter from any bank.
  11. Should not be a beneficiary under the first phase of the Prime Tourism Vehicle Scheme.
  1. A valid photo identity with address which includes Aadhar Card, Voter ID, Passport and driving license. 
  2. A letter of certification needs to be provided from the Block Development Officer (BDO) to support the claim for involvement in tourism sector
  3. Pan card (Optional)
  4. Latest bank statement of 1 year (Optional)
  5. Trade license wherever (Optional)
  6. GST certificate and proof of return (Optional)
  7. Any other document as specified by the department and financing bank.
Apply Now

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

Departments

  • Tourism Department
  • Animal Husbandry & Veterinary
  • Department of Agriculture and Farmers’ Welfare
  • Meghalaya Basin Management Agency, MBMA

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Contact Us

Call Our Helpline: 1971 or 18002456851

Mail us at: help@cmelevate.in

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