New Delhi's municipal body has appointed a financial advisor to select a partner for operating a hotel on the property that currently houses the iconic Taj Mahal Hotel in the heart of the city even as the Tatas have sought a long-term extension of their licence agreement to manage the hotel.
The Tata-owned Indian Hotels has been in charge of the marquee property on Mansingh Road since 1978 under a 33-year agreement with the New Delhi Municipal Council (NDMC), the body that owns both the land as well as the building. The lease expired in October 2011 and was renewed in favour of Indian Hotels on a short-term basis as per a report in ET by Arun Kumar.
"The Indian Hotels Company Ltd has sought an extension of the collaboration agreement and licence deed between NDMC and IHCL in respect of the Taj Mahal Hotel. IHCL has enjoyed a cordial and beneficial association with NDMC over the past three decades. They look forward to continuing this business relationship in a mutually beneficial manner," said a person close to the Tatas.
NDMC has tasked the Mumbai-based Infrastructure Development Finance Company (IDFC) with the responsibility of developing a private-public partnership structure that would optimise revenues for the municipal body and assist it in finalising a private sector partner.
An IDFC spokesman said it was yet to start formal work on its mandate and it would be premature to comment on the process it would follow. "Best practices would ensure maximising both competition and transparency in the bidding for selection of the O&M (operation & maintenance) partner," said the spokesman.
Taj Mansingh is one of the capital's top hotels and an auction, if one were to take place, is likely to attract bids.
» Read Complete News.....(You need to login first to read complete news). New User? Register for FREE!
» Back to Travel News