Financial Daily from THE HINDU group of publications
Monday, May 15, 2006
Financial Daily from THE HINDU group of publications Monday, May 15, 2006 |
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Industry & Economy
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Hotels Logistics - Railways 21 in race for 4 budget hotels of Railways Mamuni Das
New Delhi , May 14 Indian Railways has received 21 bids from hoteliers who want to set up and operate budget hotels on Railways' land in Chandigarh, Vijayawada, Secunderabad and Madurai. In the first phase, Indian Railway Catering and Tourism Corporation (IRCTC) had invited bids from hoteliers for five sites that included Sealdah as well. However, no hotelier has evinced interest in setting up a budget hotel at Sealdah. "The Sealdah site already had a built up area unlike other sites which were Greenfield in nature. Probably that explains the reluctance on the part of companies to bid for Sealdah," reliable sources told Business Line declining to share the names of bidders.
Bid award in 1 month
The bids are likely to be awarded within a month's time — provided there are no glitches. They first need to be technically evaluated after which the financial bids would be opened. Hoteliers have bid on the level of revenues that they would share with IRCTC every year for the 30-year period. A part of the shared revenue, which is a fixed component, would accrue to Indian Railways in the form of ground rental. The ground rental varies from site to site and the operator is required to pay seven per cent higher rental every subsequent year. Operators can fix the tariff levels for the hotel's services.
Related Stories: More Stories on : Hotels | Railways
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