The Indian Railway Catering and Tourism Corporation, a subsidiary of the railways, will soon float tenders for 13 sites for budget hotels on a build-operate-transfer arrangement for approximately 30 years.
An official with the IRCTC has confirmed that these sites are located at Tirupati, Agra, Jaipur, Jodhpur, Jaisalmer, Udaipur, New Jalpaiguri, Darjeeling, Ooty, Habibganj in Bhopal and Lalragh in Bikaner. The remaining two sites will be in south India.
The land area for these sites will vary from 2,400 sq m and 5,000 sq m. Recently, the IRCTC had taken out tenders for five sites in Madurai, Vijaywada, Chandigarh, Secunderabad and Sealdah in West Bengal.
The new tenders are expected to follow the same pattern as the previous ones, whereby, winners of the bids will have to pay IRCTC an annual fixed user charge. This fixed charge, which will vary from site to site, will increase by 7
per cent every year.
For instance, in IRCTC's recent tender for a budget hotel in Vijaywada, the fixed user charge is Rs 14.4 lakhs (Rs 1.44 million) in the first year and Rs 1.02 crore (Rs 10.2 million) in the 30th year.
In the closed bidding process, parties are expected to quote a percentage of the hotel's net turnover that will be shared with IRCTC as licence fee.
Developers will have to quote the number so that for any succeeding year, the percentage mentioned should be higher or equal to the percentage quoted in the previous year.
The IRCTC has already identified another 40 locations for budget hotels and is planning to float tenders for at least 25 sites this year.
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