Shimla, Oct. 30 -- The Himachal Pradesh government has concluded the e-auction for licence rights to operate and manage Wildflower Hall Hotel at Chharabra, around 13 km from Shimla, securing a revenue-sharing bid of 47.1 per cent of the property's annual gross revenue.
The government said this was the highest-ever revenue-sharing bid in India for a transaction of this nature. The auction marks a milestone in its efforts to ensure management of public assets.
The 35-year arrangement is expected to generate recurring revenue of Rs 3 crore per month for the state exchequer, with an annual escalation of 3 per cent. It is projected to yield around Rs 2,000 crore over the licence period, besides an upfront licence fee of Rs 24 crore and a committed minimum investment of Rs 50 crore in the hotel.
The development follows the conclusion of nearly 25 years of litigation and restoration of the property to the state through Supreme Court proceedings. After taking over ownership from the Oberoi group, the government has secured control of the hotel land, property, joint venture company and associated assets and rights, besides cash accruals of Rs 400 crore.
Published by HT Digital Content Services with permission from Millennium Post.