Shimla, Oct 30 (IANS) The Himachal Pradesh government said on Friday that it has concluded the competitive e-auction for granting licence rights for the operation and management of the five-star Wildflower Hall Hotel in Shimla, securing an unprecedented revenue-sharing bid of 47.1 per cent of the annual gross revenue.

This is said to be the highest-ever revenue-sharing bid in India for a transaction of this nature.

The arrangement is expected to generate substantial and sustained recurring revenue for the state exchequer, estimated at around Rs 3 crore per month, with an annual escalation of 3 per cent over the licence period of 35 years.

The transaction is projected to generate aggregate revenue of around 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, the government said.

Significantly, this achievement follows the successful conclusion of nearly 25 years of prolonged litigation, culminating in the restoration of the hotel property to the 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 around 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 the state government was committed to safeguarding the legitimate rights and interests of the state in every major project and public asset.

He said the successful resolution of the Wildflower Hall matter, after nearly 25 years of litigation, was a significant achievement for the state.

He also added that the state government had consistently pursued the state’s legitimate interests in several important projects.

He said the state government would not compromise on the interests of the state and its people and would continue to pursue every matter firmly and transparently.

–IANS

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