New Delhi, Aug 16 (IANS) As part of its revenue generation efforts, the Delhi Development Authority’s (DDA) first Request For Proposal (RFP) for disposing land for a Five Star hotel on an annually incremental licence fee basis, has fetched Rs 27.19 crore per annum from the highest bidder, an official said on Saturday.

The DDA had kept a reserved fee of Rs 18 crore for the bid, which is expected to generate a revenue of Rs 10,000 crore for the land-owning agency over the lease period of 55 years, apart from providing a much-needed boost to the hospitality sector.

The bid for a land parcel of around 2 acres at Nehru Place earmarked for a five-star hotel was announced through a Request for Proposal (RFP) issued on May 2, 2025. The auction process was conducted on August 13. SBI Capital Markets Ltd. assisted DDA as the transaction advisor for the entire process.

The property at Nehru Place is set to become one of Delhi’s largest hotels with 500+ keys, said an official.

Under the direct guidance of Lt. Governor V.K. Saxena, who is also the Chairman of DDA, the land-owning agency is moving away from the hitherto existing auction route.

It has now embarked upon a Special License Property initiative aimed at facilitating marquee projects on a long-term annual licence basis.

Experience during the last two decades or so has shown that the auction route was not achieving desired results due to the high cost of land.

“This strategic move is aimed at making available suitable and viable land parcels to different sectors such as hospitality, warehousing, health, iconic retail and similar other large-scale developments, fostering economic growth and enhancing Delhi’s infrastructure profile,” said a statement.

The Special License Property initiative, initiated by the L-G, is a key step towards leveraging DDA’s land assets for sustainable, high-value development, contributing to Delhi’s emergence as a global destination for business, hospitality and medical treatment. It will also ensure that DDA continues to be the owner of the land.

–IANS

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