The Indian Hotels Company Limited (IHCL), the company which operates the Taj chain of luxury hotels, has sought an extension of the Collaboration Agreement and License Deed for its property – the Taj Mansingh Hotel, New Delhi. The agreement and the deed, currently on a one-year extension, will end in October this year.

A Taj spokesperson said, “IHCL has enjoyed a very cordial and mutually beneficial business association with New Delhi Municipal Council (NDMC) over the past three decades. We look forward to continuing this business relationship in a mutually-beneficial manner.”

The hotel, situated on Mansingh Road in New Delhi area, is being operated under an agreement between IHCL and NDMC. The Tata-owned IHCL had entered into a 33-year lease on a revenue share model for using the property in 1978.

Meanwhile, the civic body is roping in Infrastructure Development Finance Company (IDFC) to prepare a roadmap for deciding on how to utilise the property. The Press Trust of India (PTI) quoting an NDMC official, reported that the Urban Development Ministry has suggested that the civic body should go for open bids for the property in which the Taj Hotel is located.

“The tendering process has not been started. It will depend on the report by the consultant, suggestions by Urban Development Ministry and legal advice. We hope to finish this process by this year-end,” the official said.

The official said the consultant will study the possibility of a private-public partnership structure that would optimise revenues for the NDMC. It will also help the civic body in evaluating the property's cost.

On the extension of the lease by one year, the official said it was decided to do so as the process for an open bid would have taken time. The NDMC had earlier initiated the process of renewing the lease for a longer period but had to abort it as the Ministry suggested it to go for an open bid.

> shishir.s@thehindu.co.in

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