Lease Agreement Signed Between ANIIDCO and IHC 

 

Port Blair, Dec. 7: A Lease Agreement for development of Luxury Beach Resort Project was signed between ANIIDCO and Indian Hotels Company Ltd. (Taj Group) at Vikas Bhawan, Port Blair today. Shri D M Khaneta, General Manager, ANIIDCO and Shri P K Bhatia, Director (Legal), Indian Hotels Company Ltd (IHCL) signed the Lease Agreement. 

 

ANIIDCO had invited bid for leasing out 18.33 hectares of land at Radhanagar, Havelock for development of Beach Resort Project. Many leading hotel chains like DLF Hilton, Oberoi, ITC Hotels, Barefoot, Park etc. had shown interest in the project and IHCL (Taj Group) was the successful bidder. As per the terms of the lease, land is given initially for 30 years with two renewal clauses of 30 years each. IHCL will pay lease rent of Rs. 2.25 crore per year and it will be revised upward by 10% every 5 years. Apart from the annual lease rental, IHCL shall also share its annual gross revenue to the extent of 2% for the first 30 years and thereafter at the 3%. 
IHCL has already paid Rs. 6.75 crore being advance lease rental for three years to ANIIDCO and they will also be paying Rs.62,00,999/- to A&N Administration towards lease registration charges. IHCL will be allowed 3 years time from the signing of the agreement to complete the project. Further, as per the terms of the lease 60% of the total personnel recruited will be local residents of A&N Islands. This will boost local employment generation. 

 

As per the proposal submitted by IHCL they are planning to have luxury villas, speciality restaurant, banquet and meeting facility, health club, spa, water sports facility etc. The project will obtain all environmental clearances before construction commences. This project will catalyze investment of about Rs. 80 crore and help to promote Andaman and Nicobar Islands as a global Island destination.