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States » NorthPosted at: Apr 5 2025 11:52PM


Himachal Pradesh ministerial council approves interim contract for Hotel Wildflower Hall

Shimla, Apr 5 (UNI) Himachal Pradesh Council of Ministers today decided to enter into an interim operation contract with East India Hotel Ltd (EIH Ltd) for the management of Hotel Wildflower Hall in Mashobra. The draft of the contract was approved in a meeting chaired by Chief Minister Sukhvinder Singh Sukhu.
Under the agreement, EIH Ltd will manage the property on an interim basis, ensuring a monthly revenue of Rs 1.77 crore for the state government.
This arrangement would prevent the heritage property from deteriorating while the government prepares for a competitive e-auction or bidding process to select a new long-term operator.
The state government had taken control of the luxury hotel following a High Court order. Soon after assuming control, the government appointed Anil Taneja, General Manager of the Himachal Pradesh Tourism Development Corporation (HPTDC), along with an accounting officer, to oversee daily operations and monitor billing.
Mediation talks between the government and the Oberoi Group, the previous operator, had been ongoing for a week. After evaluating the hotel’s daily and monthly earnings, it was decided that the Oberoi Group would pay Rs 1.78 Cr per month until the global tender process is completed. The government expects to finalize a new operator within the next three months.
In addition to the monthly payment, the Oberoi Group will be separately compensated for any pending dues, the calculation of which is currently underway.
A week ago, the government had informed the High Court that the global tender process might take time and sought permission to continue the existing arrangement in the interim.
The decision ensures financial stability for the state while safeguarding the iconic property’s upkeep until a permanent operator is selected.
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