- In the presence of TourismMinister Raju Kumar Singh, an MoU was signed between BSTDC and the selected bidder Kumar Infratrade for the construction of a five-star hotel.
- An agreement was signed between Bihar State Tourism Development Corporation, the selected bidder, and ITC Hotels.
TTT NEWS NETWORK
PATNA | 1 SEPTEMBER 2025
Today, Monday, at the conference hall of Bihar State Tourism Development Corporation, Daroga Rai Path, Sikh Heritage Bhawan, Patna, in the presence of TourismMinister Raju Kumar Singh, an agreement was signed between ITC Hotels Ltd., the selected bidder, and Bihar State Tourism Development Corporation for the construction of a five-star hotel on the land of Hotel Pataliputra Ashok.
On this occasion, the Tourism Minister stated that to provide quality accommodation for tourists in Patna, the state government is facilitating the construction of three five-star hotels under the Public-Private Partnership model. The first project will be undertaken by the prestigious ITC Hotels Group, which will construct a five-star hotel on the land of Hotel Pataliputra Ashok within the next four years. Today’s signing marks the formalization of this historic agreement for Bihar.
Tourism Secretary Mr. Lokesh Kumar Singh informed at the beginning of the program that the Letter of Award had already been issued to M/s Kumar Infratrade Enterprises Pvt. Ltd., Patna, the selected bidder for the construction of a five-star hotel on the land of Hotel Pataliputra Ashok. Subsequently, the agency selected ITC to operate a top luxury five-star hotel with a minimum of 140 rooms on 1.5 acres of land at Hotel Pataliputra Ashok, Patna. Accordingly, the agreement was signed today between the selected bidder and Bihar State Tourism Development Corporation.
He further informed that the tender process for the construction of a five-star hotel at the Bankipur Bus Stand complex near Gandhi Maidan is in its final stage. Meanwhile, for the construction of a five-star hotel on the land of Sultan Palace on Bir Chand Patel Path, a committee has been formed under the chairmanship of the Department of Art, Culture, and Youth, keeping in mind the heritage nature of the building. The selection of companies will proceed after the committee’s report. Additionally, the process for building two five-star hotels in Rajgir and one in Vaishali is underway. For the guest house built by the Building Construction Department at Valmikinagar, only companies eligible for five-star hotel construction will be considered in the tender process.
On this occasion, Mr. Manish Kumar, Director of Kumar Infratrade, said that ITC Hotels has already commenced operations as a hotel operator in Bodh Gaya from today, and on the same day, the agreement with ITC in Patna is being finalized. Mr. H.D. Anil Chadda of the ITC Group stated that the construction of this five-star hotel will be completed within the stipulated four-year timeline.
The event was also attended by Mr. Nand Kishore, Managing Director of Bihar State Tourism Development Corporation, Mr. Udayan Mishra, Director of Tourism and Special Secretary, Mr. Chandan Chauhan, General Manager of BSTDC, along with all departmental officials and staff.
Construction as per Infrastructure Development Enabling Amendment Act 2023:
After the transfer of Hotel Pataliputra Ashok by India Tourism Development Corporation, New Delhi, to the Department of Tourism / Bihar State Tourism Development Corporation Ltd., the state government decided to construct a five-star hotel with modern accommodation and facilities on its land in accordance with the provisions of the Infrastructure Development Enabling Amendment Act 2023.
Subsequently, advertisements were published in various newspapers for the selection of an agency as per the RFP and Concession Agreement prepared by the appointed Transaction Advisor. By the deadline, five bidders submitted tenders. After technical evaluation, four bidders were found technically qualified. In the financial bids, Kumar Infratrade Enterprises Pvt. Ltd. offered the highest Yearly License Premium (YLP) of ₹7,57,00,000 + GST. Following approval by the State Cabinet, the Letter of Award (LOA) was issued.
As per the tender conditions, the bidder must deposit the Minimum Reserve Value (MRV) of ₹28.5 crore along with interest within 11 years from the date of LOA issuance for the 1.5-acre land of Hotel Pataliputra Ashok. Additionally, the YLP of ₹7,57,00,000 + GST will increase by 10% every five years. After fulfilling the LOA conditions, on 01.09.2025, an agreement was signed on the site of Hotel Pataliputra Ashok, Patna, under PPP between ITC Hotels, Kumar Infratrade Enterprises Pvt. Ltd., and Bihar State Tourism Development Corporation Ltd. The proposed five-star hotel will have 140 rooms.
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