Tripura government sign memorandum of understanding with TATA group’s IHCL for conversion of Pushpavanta Palace into a star category hotel

By Our Correspondent

Agartala, May 20, 2025

In order to facilitate the conversion of the historical ‘Pushpavanta Palace’ in Kunjaban into a star category hotel the Tripura government today signed a memorandum of understanding (MOU) with the Indian Hotel Company Limited (IHCL) , an affiliate of the famous TATA group. The signing was done in an official programme in the official residence of the chief minister Dr Manik Saha in Syama Prasad Lane in the latter’s presence.

Besides the chief minister, the programme was attended by the minister for tourism Sushanta Chowdhury , senior secretary level IAS officials Kiran Gittye and Uttam Kumar Chakma. The MOU was signed by the officials of the state government and representatives of the IHCL. The chief minister Dr Manik Saha and the tourism minister Sushanta Chowdhury delivered brief speeches highlighting the importance of the occasion and how it will usher in a new era of development for Tripura and how the upcoming luxury hotel will enable Tripura to host many international and international events.

As per the MOU signed today the state government will give the IHCL 30% subsidy on capital investment with a ceiling of Rs 40 crores and in addition the investors will receive 100% GST reimbursement with a ceiling of Rs 250 crores for fifteen years. Most of the accommodations will be outside the heritage building except for a few signature suites housed within the palace for preservation of royal experience. The investors-that is , the IHCL-will deposit a lease rental with the tourism department. Apart from this, the IHCL will grant selected privileges to the tourism department and the investors will recruit staff from within the state as far as practicable except executive level staff.

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