Uttar Pradesh is ramping up its rural tourism credentials with the launch of its first-ever farm stay investment drive, a scheme aimed at transforming villages into immersive tourist destinations and expanding agri-tourism across the state. The initiative, announced by Tourism Minister Jaiveer Singh, offers substantial incentives, infrastructure support, and regulatory relief to investors and local entrepreneurs willing to build farm stays.
The scheme defines a “farm stay” as accommodation built on or near a working farm, separate from the owner’s residence, with at least two lettable rooms and a reception area. Guests must have access to rural experiences such as agricultural farming, horticulture, fish ponds, dairy farming, animal husbandry, and guided farm tours, making the village itself an attraction.
To attract investment, the state is providing capital investment subsidies anywhere from 10% to 25% depending on project scale. Projects above certain thresholds get higher caps, up to ₹40 crore in total incentives for large-scale farm stay ventures. Women entrepreneurs, SC/ST/backward class investors, and projects in priority destinations will receive additional support, including extra subsidies (up to ~5%) and benefits like interest subsidies on loans.
Other financial relief measures include 100% exemption on stamp duty, land conversion fees, and development charges for eligible projects. There is also interest subsidy for loans up to ₹5 crore, capped at ₹25 lakh per year for five years in lieu of a capital subsidy.
Minister Jaiveer Singh has emphasized that the scheme isn’t just about lodging, it’s about cultural experiences, heritage, and livelihoods. He has said the goal is to make villages “vibrant centers of culture, livelihood, and learning,” where rural households benefit via tourism incomes and local artisans, food producers, and guides also find opportunity.
