Agartala (Tripura) [India], May 20 : In a move to boost tourism and preserve Tripura's heritage, the Government of Tripura on Tuesday signed a lease agreement with The Indian Hotels Company Limited (IHCL) for the development of a luxury Taj Palace Hotel at the Pushpabanta Palace in Agartala.
The ceremony was held in the presence of Chief Minister Manik Saha and Sushanta Choudhury, Minister of Tourism.
Speaking at the event, CM Manik Saha said, "This project is a milestone in Tripura's journey towards becoming a premium tourist destination. The partnership with IHCL will bring international standards of hospitality while preserving our rich heritage."

The Pushpabanta Palace, built in 1917 by Maharaja Birendra Kishore Manikya Deb Barman Bahadur, is a celebrated architectural landmark in Agartala. Once the Governor's House, the palace is now set to be transformed into a world-class luxury destination under a Public-Private Partnership (PPP) model, aligning with the Tripura Industrial Investment Promotion Incentive Scheme, 2022 (TIIPIS) and UNNATI 2024.
The project was initiated following IHCL's proposal dated October 7, 2024, for converting the historic property into a Taj Palace Hotel. The Cabinet gave its nod on March 10, 2025, and a Memorandum of Understanding was executed on March 14, 2025.
IHCL will develop a 100-room luxury hotel with signature suites, banquet halls, wellness and fitness centres, and leisure facilities. The heritage building will be carefully restored for public use and hospitality reception areas.
A 600 sqm convention hall will be redesigned with modern amenities, including breakout rooms, banquet kitchens, and pre-function areas. IHCL has committed to prioritising recruitment from Tripura for hotel staff, promoting local employment and skill development.
Guests and residents will be able to experience the grandeur of the erstwhile royal estate. Select privileges under the Tripura Merger Agreement of 1949 will also be extended to the Government of Tripura, including limited complimentary stays.
This agreement not only marks a new chapter in heritage tourism for Tripura but also signals the government's proactive approach to inviting world-class investment under its flagship industrial and tourism development schemes.
The restoration and development work will commence soon, with the proposed Taj Pushpabanta Palace expected to become a jewel in Tripura's tourism crown.