Official sources in the state government said that the construction of the hotel of international standard would start within six months from the date of receipt of approval of building plans from the GMC/GMDA and the hotel will be operational within four years of execution of the deed, subject to grant of all requisite approvals from the authorities concerned. The Tourism Department will be the nodal agency for implementation of the project. The company will submit the schematic plans, layouts and designs, concept of services design to the state government and will seek its suggestions before commencing the project.

 Lack of proper and requisite hotel facilities in the region has been often cited as one of reasons which dissuade high profile tourist and business magnates from visiting the region. 

 N R Narayana Murthy, former executive Chairman of Infosys Technologies in 2006 during his visit to Assam advocated for the creation of infrastructure facilities to facilitate Infosys in starting its business venture in Assam. This seems to have gone well with the state government as the government is now making desperate attempts to equip the city of Guwahati with a five star hotel. 

 The civic body of Guwahati, the Guwahati Metropolitan Development Authority (GMDA) is also developing a five star hotel in Guwahati. The state government has given 27 bighas of land at Gotanagar in Guwahati for this project.

 The GMDA has inked a MoU with Dharampal Satyapal Group (DSG) to set up five star hotels in Guwahati. Investment to the tune of Rs 100 crore will be made in the first phase of this project.

  Hyatt Hotels Corporation is also planning to start a five star hotel in Guwahati. The setting up of such a hotel in the financial hub of the Northeast, Guwahati, is a part of the company’s new strategy to set up another 50 hotels worldwide in the next seven years.   

 Tata group is also developing the “Ginger” brand of hotel in Guwahati. This budget hotel is under construction.

 The Meghalaya government has also decided to develop Crowborough Hotel project in the state under Public Private Participation model.

 North Eastern Council (NEC) has formed a committee with the Infrastructure Leasing & Financial Services Limited (IL&FS) for identification of viable PPP projects. There is a corpus through which feasibility study, marketing of the project is done and bids are invited.  

 Meghalaya Touirsm Development Corporation Ltd (MTDC) has inked an agreement with Shylla, a local entrepreneur of Meghalaya for redevelopment of the defunct Crowborough Hotel project in association with a reputed hospitality chain. The developer will be responsible for construction, operation and management of the project for thirty three years.

 The Hotel Crowborrough site is situated in Police Bazar in Shillong in a plot of land measuring 2682 sq meters. Initially, the project was constructed by the Government of Meghalaya starting from 1986 with a 104 room capacity and commercial space along with other facilities. However, the project had gone to court due to disputes between the Government of Meghalya and the contractors and the construction was stopped midway. The possession of the building was taken by MTDC after clearances of dues and settlement of court order, however, the project could not progress further.

 Finally, the Government of Meghalaya entrusted IL&FS to create a PPP structure for the project. Accordingly, IL&FS has done detailed project development work. Through bidding process where 11 bidders participated, Lesslly Shylla was selected to design and construct the project to be managed by a reputed hospitality chain.

 The bidding criteria was highest premium to MTDC, the selected bidder Mr. Shylla had bid Rs.96.23 lakh per annum over the minimum bid price of Rs.77 lakh. As such, the project would provide the MTDC with a huge resource support to promote tourism projects in the State.

 Mr. Conrad Sangma, Minister (Tourism) said that he would replicate this model in other projects in the  power, urban and tourism sectors to attract private sector in a PPP structure.

 Mr. Shyamkanu Mahanta, Asst Vice President of IL&FS Infrastructure Development Corporation mentioned that Rs. 1.73 crore per annum would be paid by the selected developer which could provide the surplus to MTDC to reinvest in other tourism development projects. He mentioned that the project would provide confidence to the Government of Meghalaya and other Northeastern states to create large investment without resorting to Government resources only. He mentioned that entire project development expenditure is borne by IL&FS out of the fund created by IL&FS and NEC for promoting tourism projects in the Northeast.

 Under the IL&FS-NEC arrangement, already, Taj group has set up a budget hotel (Ginger brand) at Agartala and one is under progress in Hengarabari in Guwahati (in association with Institute of Hotel Management). Sarovar group is setting up a project in management contract in Tezpur, in Gangtok a deluxe hotel is being set up. Apart from this, Crowborrough is the fifth Public Private Partnership project already finalised through such initiatives in the last two years. Agartala Ginger hotel construction is expected to be completed in 12 months. To increase the viability of the project, NEC has given a grant of Rs.90 lakh to the project.

 IL&FS is also been mandated by the Government of Nagaland and the Government of Tripura to convert the existing tourism lodge at Agartala and Dimapur into Budget hotels and commercial centers. The project is being finalized shortly. Also, under NEC arrangement, IL&FS is working towards development of tourism resort projects in various locations of Arunachal Pradesh.

 Sources in NEC added, “For improving the tourism scenario, it is important to improve the tourism infrastructure, we are addressing the issue of accommodation. Besides big chains, we are trying to promote local entrepreneurs to take up accommodation projects and budget hotels.”