Indian Railway Catering and Tourism Corporation (IRCTC) has decided to join hands with state governments for setting up budget hotels at Chandigarh, Palanpur, Bhubaneswar, Katra and Khajuraho.

"We had written to all the states about our budget hotel proposals and received positive response from Haryana, Orissa, Madhya Pradesh, Jammu and Kashmir and Himachal Pradesh," a senior IRCTC official said.

While land will be provided by the state governments on lease basis, IRCTC will construct, operate and manage the hotels.

"We have asked for 1-2 acres of land from the state governments on lease. While an 1.5-acre site near Bhubaneswar bus stop has been finalised, land at Katra, Palanpur, Khajuraho and Chandigarh are likely to be finalised shortly,"
the official said.

The official, however, clarified that these hotels will come up at non-railway land. 

Besides Bhubaneswar, IRCTC is in the process of identifying suitable plot at Puri sea beach to construct a budget hotel in Orissa. "Keeping the tourism potential in mind, Orissa government has agreed for joint partnership with IRCTC for setting up hotels at both Puri and Bhubaneswar," the official said.

The budget hotel will have about 100 rooms, round the clock cafeteria, modern base kitchen and a banquet hall.

The IRCTC has sought minimum of 30 years of lease from state governments for setting up the hotels.

"We are identifying tourist places across the country for constructing budget hotels in partnership with the state governments," the official said.

"While five states have responded till now, we are expecting more states to follow the suit in near future."  About the fund for the hotel project, the official said, "Since the project is bankable we are hopeful of getting loans from banks. The business model is being worked with state governments."

After the railway catering was taken out from the IRCTC, the Corporation has shifted its focus on other business like taking up catering responsibility at different institutions and offices and setting up food outlets there. 

PTI