The Indian Express 26.03.2013
NDMC ready with ‘request for proposal’ for Taj Mansingh
The future course of action on The Taj Mahal Hotel on Mansigh Road,
popularly known as Taj Mansingh, is likely to be finalised soon with the
New Delhi Municipal Council ready to call for ‘request for proposal’
(RFP) to decide the next operating company for the five-star facility.
The 33-year lease for the hotel, awarded by NDMC to Indian Hotels
Company Limited (IHC) ended in October 2011. The civic agency then
granted a one-year extension to IHC, buying itself time to chart out the
next course of action.
The NDMC also engaged Ernst & Young as a consultant to advise
on the modalities to be followed once the lease period is over. Listing
out various options, E&Y said the most profitable choice for the
NDMC would be to allow IHC to continue as the operator.
In the light of the advice, sources said the first right of refusal will be given to IHC.
A source said the RFP is scheduled to come up for discussion in the meeting of the Council on April 10.
“The tendering process for the hotel will begin as soon as the
Council gives its approval to the proposal. We have drawn up detailed
terms and conditions documents,” the source said.
Earlier, while E&Y had suggested that IHC would be the most
beneficial option for the civic agency, the legal advice from Additional
Solicitor General Rakesh Kumar Khanna opposed extension to IHC and
proposed auction of the property.
The Taj Mahal Hotel was started in 1976, when NDMC, with an
objective of developing tourism in the capital before the Pacific Area
Travel Association conference of 1978 and to boost its own revenues,
decided to develop a five-star hotel as per the standards laid down by
the Central government.
Being a municipal body, NDMC did not have the experience or the
expertise in setting up and running a five-star hotel. IHC’s offer to
the NDMC of developing a hotel as a joint venture project was taken up
and later approved by the civic agency.
