Railways identify 20 locations for Budget Hotels

The Railways have decided to set up one hundred Budget Hotels all over the Indian Railways network through Indian Railway Catering & Tourism Corporation (IRCTC). These hotels will be set up by IRCTC on public private partnership on the unused railway land in the vicinity of railway stations. Out of these 100 budget hotels, tenders for 20 locations have been finalized and tender of 10 locations have been floated.

The IRCTC has been entrusted with the task of setting up of Budget Hotels through private participation, for developing, operating and maintaining the hotels, through open competitive bidding under transparent, two packet tender system i.e. technical and financial. The IRCTC in consultation with the Zonal Railways identifies the sites, floats and finalizes the tenders by inviting private sector participation. The license period has been fixed as 30 years. Contract will be given tenderer who has qualified in technical bidding and has bid the maximum return to IRCTC over the period of license.

Budget hotels are basically extension of Retiring Rooms and Rail Yatri Niwases. By using these hotels, passengers will save the coast and time in transportation upto any hotel located in the city. These hotels will also help the Railways in developing tourism. Since, tendering system is in progress and after finalization of contract and signing of agreements the construction work may take about two years period.

This information was given by the Minister of State for Railways, Shri R.Velu in a written reply to a question in the Lok Sabha today.

Source : Press Information Bureau

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