State to invite fresh bids for Samuka tourism project by March

Faced with lackadaisical response to its bids for developing four five-star hotels over 100 acres as a part of its showpiece Samuka tourism project, the Orissa government plans to invite fresh bids for the hotel properties by March this year.

The Samuka tourism project is being developed over an area of about 1,000 acres on the public-private partnership mode at an investment of Rs 3,500 crore.

“The response to our bids for developing five-star hotel properties as a part of the Samuka tourism project has not been encouraging as only two to three hotel chains participated in the final bidding process. The lukewarm response to our bids is due to the prevailing economic recession which has probably dissuaded major hotel chains from investing in the Samuka project”, said an official source.

“We have sought the permission of the state government for inviting fresh bids for the hotel properties. The matter is now under the consideration of the state chief minister and we are expecting some response within a week. The fresh bidding process for the five-star hotel properties is expected to begin by March this year”, the source added. Earlier, eleven bidders were shortlisted in the pre-bidding process held in September last year. The shortlisted payers include both individual as well as joint bidders like Taj Group of Hotels and Resorts, ITC, Park Hotels, Ananda Spa, Emaar MGF with Hyatt, DLF with Hilton, Unitech with Starhood and Zoom Developers with Kamat hotels.

The state government is investing Rs 50-70 crore on providing external infrastructure like electricity and water supply for these five-star hotel properties. State government owned Industrial Infrastructure Development Corporation had acquired land for the Samuka project and the land was to be transferred to the Orissa Tourism Development Corporation.

The state government is also going slow on its bidding process for selecting a master developer for the Samuka project owing to the current economic slowdown. The master developer was to develop the infrastructure on the remaining 900 acres of land at the site of the project, near Sipasarubali, about 10 km south of Puri.

The facilities to be developed by the master developer include a convention centre of international standards with a seating capacity of nearly 1,500, an 18-hole golf course, boutique hotels, international spa and wellness centres, an entertainment zone and sports facilities.

The selected developer was to develop, design and operate these facilities at the site of the Samuka project. The master developer was to generate revenues either by selling or renting out these facilities.