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Journalism of Courage
There is uncertainty whether Tatas will continue to run the Taj Mahal Hotel near India Gate with the New Delhi Municipal Corporation (NDMC) mulling the option of inviting fresh bids for the property as the extended lease for its use ends in October this year.
The civic body,which owns the property on Mansingh Road where Taj Mahal Hotel is located,is roping in Infrastructure Development Finance Company (IDFC) to prepare a roadmap for deciding on how to utilise the property.
The Tata-owned Indian Hotels Company Ltd (IHCL) had entered into a 33-year lease for using the property in 1978 which ended last October and was extended by another year. The Tatas were expecting a lengthy period for lease.
An NDMC official said 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.
