Shimla, Oct. 31 -- In a major boost for cash-strapped Himachal Pradesh, the government has secured a record bid of 47.1% of the annual gross revenue for granting licence rights to operate and manage the iconic Wildflower Hall hotel near Shimla, which is one of its most prized hospitality properties. This is stated to be the highest-ever revenue-sharing bid in India for a transaction of this nature. "As per the agreement, the East India Hotels Limited, a flagship company of the Oberoi Group, will continue to manage the property by sharing 47.10% of gross revenue with the state government with periodical escalation," said Sandeep Kumar, secretary for tourism and civil aviation, Himachal Pradesh. The arrangement is expected to generate substantial and sustained recurring revenue for the state exchequer, estimated at approximately Rs.3 crore per month, with an annual escalation of 3%, over the licence period of 35 years. The transaction is projected to generate aggregate revenue of approximately Rs.2,000 crore during the licence period, besides an upfront licence fee of Rs.24 crore, and a committed minimum investment of Rs.50 crore in the hotel property. Significantly, this landmark achievement follows the successful conclusion of nearly 25 years of prolonged litigation, culminating in the restoration of the hotel property to the state government pursuant to judicial proceedings before the Supreme Court. Consequently, the state government has secured complete ownership and control of the hotel land and property, the joint venture company and its associated assets and rights, along with cash accruals of approximately Rs.400 crore. The successful auction, conducted through a transparent and competitive bidding process, represents a major achievement in unlocking the economic potential of this iconic property while retaining full ownership of the hotel and its underlying assets with the state government. Chief minister Sukhvinder Singh Sukhu said that his government was committed to safeguarding the legitimate rights and interests of the state in every major project and public asset. He said that the successful resolution of the Wildflower Hall matter, after nearly 25 years of litigation, was a significant achievement for the state. Wildflower Hall was originally owned by GHM Batten, the private secretary of the Earl of Lytton. The Colonial-era building was gutted in fire. Batten reconstructed the building and Lord Kitchner, the then commander-in-chief of the Indian armed forces, secured the lease from its owner. He returned to England in 1909, after which it was sold to a British couple, who razed the house in 1925 to erect a three-storeyed hotel with 37 rooms. After Independence, the property was taken over by the government of India that ran an agricultural school in it till 1973 when it was handed over to the Himachal Pradesh Tourism Development Corporation (HPTDC) to run a hotel. The HPTDC built 11 cottages and four rooms, a multipurpose hall and a green room. On April 5, 1993, the building was destroyed in a fire caused by a short circuit. However, the HPTDC kept running the cottages and four other rooms that had survived the blaze till the Himachal Pradesh government signed a joint venture with the Oberoi Group to rebuild Wildflower Hall as a luxury hotel. The state government then decided to explore various methods and possibilities of putting the hotel back in operation. After which global tenders were invited to re-develop it as a five-star hotel. East India Hotels Limited, a flagship company of the Oberoi Group, also participated and the state government decided to work in partnership with it. Under the joint venture, a company called Mashobra Resort Limited was formed to build the five-star hotel within four years. It was under the Virbhadra Singh-led Congress government the joint venture was established. In 1996, the government transferred the land in the name of the company. But even after six years, the company could not make the hotel ready for use. Then BJP government, under PK Dhumal, citing concerns about "selling Himachal's interests" had terminated the agreement on March 6, 2002, citing a breach of terms amid ongoing issues such as the non-functionality of the hotel within the mandated six years and the non-regularisation of 57 rooms by the town and country planning department. This decision of the government was challenged before the company law board, which ruled in favour of the company. The government challenged this decision before a single bench of the high court. Disposing of the government's application, the HC in November 17, 2023, said the Oberoi Group had failed to comply with the arbitration award within the stipulated three months. Therefore, the state government became eligible to take over the possession and management of the luxury hotel....