New Delhi [India], February 24 : The Government of India, under the National Monetisation Pipeline (NMP) 2.0 has proposed the redevelopment of two brownfield hotels in New Delhi.
As per the report shared by the NITI Aayog, these hotels are Hotel Ashok, and Hotel Samrat, situated at the heart of the national capital.
The private sector investment that these projects attract shall be counted towards monetisation proceeds.
Under the proposed plan, Rs 820 crore has been earmarked for The Ashok Hotel and Rs 380 crore for Hotel Samrat.
The redevelopment project for Hotel Ashok is larger and is expected to be awarded in the initial period of NMP 2.0. A similar project for Hotel Samrat is expected towards the end of the period. The award for The Ashok redevelopment is targeted for the Financial Year 2027, while Hotel Samrat for Financial Year 2030.
Both Asset Classes shall use the direct contractual method, mostly in the form PPP contracts. Monetisation value is expected in the form of investment for development by the private sector from these contractual arrangements, the central government said.
Both Asset Classes entail investment from partnership projects. Accordingly, this value has been accrued as a direct investment.
Public Private Partnership (PPP) is a form of fixed-term contractual arrangement between a public entity on one side and a private entity on the other, for the provision of public assets and/or public services through investments being made and/or management being undertaken by the private entity, may or may not require payment of fee by users, for a specified period of time, where there is well defined allocation of risk between the private entity and the public entity and the private entity's performance is contractually obligated to conform (or are benchmarked) to specified and pre-determined performance standards.
Built in 1956, Ashok Hotel is a deluxe property located in the Diplomatic Enclave of Chanakyapuri, New Delhi, and is owned and operated by the India Tourism Development Corporation (ITDC).
Hotel Samrat is also managed by ITDC is located in central New Delhi. ITDC is a central public sector undertaking under the Ministry of Tourism.