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Govt Clears Rs 1,200 Cr PPP Redevelopment of Delhi's Ashok & Samrat Hotels

The Indian government has approved the Public-Private Partnership (PPP) redevelopment of two iconic Delhi hotels, Ashok and Samrat, under the National Monetisation Pipeline 2.0. A total private investment of Rs 1,200 crore is planned, with Rs 820 crore earmarked for The Ashok and Rs 380 crore for Hotel Samrat. The project awards are targeted for Financial Year 2027 for The Ashok and FY2030 for Hotel Samrat. Both hotels, currently owned and operated by the India Tourism Development Corporation (ITDC), will be redeveloped using a direct contractual PPP model where private investment counts as monetisation proceeds.

Key Points: Rs 1,200 Cr PPP Plan for Ashok, Samrat Hotels Under NMP 2.0

  • Rs 1,200 Cr total investment planned
  • Ashok Hotel gets Rs 820 Cr, Samrat Rs 380 Cr
  • Award targeted for FY27 & FY30 respectively
  • Uses direct contractual PPP method
  • Part of National Monetisation Pipeline 2.0
2 min read

Govt clears PPP redevelopment of Ashok, Samrat Hotels under NMP 2.0; Rs 1,200 Cr investment planned

Govt approves PPP redevelopment of Hotel Ashok & Samrat in Delhi under NMP 2.0, attracting Rs 1,200 Cr private investment. Details inside.

"Monetisation value is expected in the form of investment for development by the private sector - Central Government"

New Delhi, February 24

The Government of India, under the National Monetisation Pipeline 2.0 has proposed the redevelopment of two brownfield hotels in New Delhi.

As per the report shared by the NITI Aayog, these hotels are Hotel Ashok, and Hotel Samrat, situated at the heart of the national capital.

The private sector investment that these projects attract shall be counted towards monetisation proceeds.

Under the proposed plan, Rs 820 crore has been earmarked for The Ashok Hotel and Rs 380 crore for Hotel Samrat.

The redevelopment project for Hotel Ashok is larger and is expected to be awarded in the initial period of NMP 2.0. A similar project for Hotel Samrat is expected towards the end of the period. The award for The Ashok redevelopment is targeted for the Financial Year 2027, while Hotel Samrat for Financial Year 2030.

Both Asset Classes shall use the direct contractual method, mostly in the form PPP contracts. Monetisation value is expected in the form of investment for development by the private sector from these contractual arrangements, the central government said.

Both Asset Classes entail investment from partnership projects. Accordingly, this value has been accrued as a direct investment.

Public Private Partnership (PPP) is a form of fixed-term contractual arrangement between a public entity on one side and a private entity on the other, for the provision of public assets and/or public services through investments being made and/or management being undertaken by the private entity, may or may not require payment of fee by users, for a specified period of time, where there is well defined allocation of risk between the private entity and the public entity and the private entity's performance is contractually obligated to conform (or are benchmarked) to specified and pre-determined performance standards.

Built in 1956, Ashok Hotel is a deluxe property located in the Diplomatic Enclave of Chanakyapuri, New Delhi, and is owned and operated by the India Tourism Development Corporation (ITDC).

Hotel Samrat is also managed by ITDC is located in central New Delhi. ITDC is a central public sector undertaking under the Ministry of Tourism.

- ANI

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Reader Comments

P
Priya S
Rs 1,200 crore is a huge investment. While redevelopment is needed, I hope the focus is on value for public money. The timeline seems long - award in FY27 and FY30? We need faster execution. Also, will this lead to sky-high room tariffs making these hotels inaccessible to the common Indian tourist?
R
Rohit P
Good move! Chanakyapuri is prime real estate. A world-class hotel there will boost tourism and diplomatic engagements. Private partnership should improve service quality drastically. ITDC-run hotels often lack that finesse. My only request: please don't change the classic names!
S
Sarah B
As a frequent business traveler to Delhi, this is welcome news. The location of these hotels is unbeatable, but the facilities need a major upgrade to compete with private chains. If done right, this can set a benchmark for other government property redevelopments across India.
K
Karthik V
I have mixed feelings. On one hand, development is good. On the other, we must ensure transparency in the PPP contracts. Who is the private partner? What are the revenue-sharing terms? The "monetisation" should benefit the public exchequer significantly, not just private players. The details matter.
M
Meera T
The Ashok holds so many memories from my childhood visits to Delhi. I hope the redevelopment respects its historical significance. Built in 1956, it's part of Delhi's post-independence architectural story. Modernize, but don't erase the character. 🙏

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