NDMC ropes in bank to auction Taj Mahal Hotel's lease

NDMC has roped in SBICap to be its transaction advisor for the auction of the lease to run its Taj Mahal Hotel on Mansingh Road in central Delhi.

“We got an approval from the council to take on board SBICAP as our transaction advisor for the auction of hotel Taj Mansingh’s lease. It will guide us through the entire process,” said Naresh Kumar, the newly-appointed chairperson of New Delhi Municipal Council (NDMC).

SBI Capital Markets Limited (SBICAP) is a wholly-owned subsidiary of the SBI. It offers advice on investment and projects along with consultancy on funds mobilisation.

The property of Hotel Taj Mansingh is a property owned by the council. It was given to Indian Hotels Company Ltd (IHCL) on lease for 33 years. Though the lease expired in 2011, IHCL was given several extensions on temporary basis.

The current lease agreement, which expires on June 30, has now been given an extension of three months with the lease now expiring on September 30. Now, the NDMC is planning to complete the auction by September.

“The auction will be completed within the time-frame decided,” said Kumar.
SBICAP was the Centre's advisor for the coal auctions.

The NDMC has always maintained that it does not have the expertise to carry out the auction in this case on its own. The council had invited bids from process managers to assist it with the auction. The earlier consultant for the project Ernst and Young had pulled out from the process in November, 2014.

Meanwhile, the newly appointed chief is also weighing new options to deal with parking problems and traffic congestion.

“There have been several issues with parking spaces and traffic jams in some areas. The hotspots have to be identified and the solution will be worked out accordingly,” said Kumar.

The council will also work out ways to check water logging in its areas during monsoon. The redevelopment plans of Khan Market, K G Marg – projects which have been in the pipeline for years now – will also be reviewed.
The NDMC is also likely to focus on improving the infrastructure of the existing schools.