Rural Tourism Village Stay

§1What this business is

On leased village land you build huts in local style, a half-open dining area, a cattle and poultry yard and a vegetable plot. Guests pay a package rate for stay and meals and take part in farming, milking, cart rides, craft and cooking demonstrations, folk music and nature walks. There is no TV or internet by design. The report plans 8 operating months a year and a tariff of ₹3,000 per hut-night with all meals.

Capacity: 15 huts (10 air-conditioned), open about 8 months a year; the report assumes 50% occupancy in year 2.

§2Is it right for you?

Skills you need

• Hospitality and food service
• Designing village experiences and events
• Online marketing to city customers
• Working with local artists, farmers and the panchayat

Why difficulty 4/5: Large investment, seasonal income and a lot of hands-on guest management.

§3Market

§4Raw material & machinery

From: SIDBI Stand-Up Mitra project profile — Rural Tourism (2018) — private guide — confirm locally

• Food and beverage for guestsabout 10% of package tariff in the report
• Toiletries, laundry and housekeeping supplies₹2.00 L a year in year 2

From: SIDBI Stand-Up Mitra project profile — Rural Tourism (2018) — private guide — confirm locally

§5Licences & registration

1. Shops and Establishments registration
2. GST
3. FSSAI registration or licence for the kitchen
4. Fire safety clearance
5. State Pollution Control Board consent (National Green Tribunal rules in some areas)
6. Protected Area permit if the site is in a forest area
7. State tourism department registration for homestays or rural tourism units where the state runs one

We can do this registration for you

§6Schemes & subsidies

• Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
• CGTMSECentralActiveNo collateral, up to ₹10 crore

The ₹52.50 L term loan fits Stand-Up India (₹10 L–₹1 crore) for SC/ST and women founders; CGTMSE can guarantee it. PMEGP and MUDRA limits are too small for this size.

§7Money

How the investment is worked out: Land lease for one year ₹10.00 L, site development and utilities ₹5.00 L, 15 huts with bathrooms, dining and reception ₹25.00 L, furniture and furnishing (AC in 10 huts) ₹15.00 L, kitchen equipment and crockery ₹7.00 L, utility vehicle, bicycles, carts and livestock ₹13.00 L, preliminary expenses ₹7.50 L, working capital margin ₹5.00 L = ₹87.50 L.

Working capital: ₹5.00 L margin for salaries, artist fees, utilities and food stock; no working capital loan planned.

Prices from 2018 — machinery and building costs will be higher now.

How to prepare a loan file

§8Export potential

§9Risks — where people fail

• Low occupancy outside holidays
• Leaky roofs or poor bathrooms in ethnic buildings
• Guest safety incidents
• Weather cutting the season short

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

1. Days 1–30: Visit a working rural tourism village stay unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
2. Days 31–60: Udyam and the licences you need (Shops and Establishments registration, GST), a project report (DPR), and the scheme or loan file.
3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

¶Sources

1. SIDBI Stand-Up Mitra project profile — Rural Tourism (2018)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.