Mysore/Mysuru, April 9 -- The tender value for leasing Lalitha Mahal Palace Hotel has been fixed at Rs. 3.76 crore, with bidders required to submit an Earnest Money Deposit (EMD) of Rs. 25 lakh.

Under the terms laid down by the Government, the private firm that wins the contract will manage and operate the hotel and pay the State an annual lease amount starting at Rs. 4 crore. The lease amount will increase by 10 percent every year.

Accordingly, the operator must pay Rs. 4 crore in the first year, Rs. 4.40 crore in the second year and Rs. 4.84 crore in the third year, with the amount continuing to rise annually at the same rate.

Only companies that agree to these financial conditions will be considered for the contract to run the hotel...