Taj Mansingh - Thorny one?

Tatas are running Taj Mansingh at New Delhi, on an extension of another one year, on the higher revenue sharing of 17.5%, which was earlier at 10.50%, having run by Tatas for the last over 34 years. Extension of lease will expire in October, 2013. This property is now eyed by other rivals like. ITC, Oberoi, Sahara and many other international chains.

New Delhi Municipal Council (NMDC) owner of the property, will definitely be interested in maximizing its income, as also, to follow a transparent method, especially in current situation of 2G and Coal scam.NMDC has decided to go for auction route of this property, which will also be in compliance to recent Supreme Court verdict, which states that private party contracts, for commercial gains, should be given on an auction route.

When auction route is followed, Tatas will have first right of refusal, but will have to match the highest bidder to continue with the property. In this process, this Taj should not become a Thorny Taj (expensive one) for Tatas.