Fresh bid to privatise BN Palace, Satapada Yatrinivas

BHUBANESWAR: Having received no response from private players to develop BN Palace at Paralakhemundi and Yatrinivas at Satapada two years back, the Tourism department has once again floated tenders to operate the two properties in public-private partnership (PPP) mode.

Stakeholders in the industry, though, are skeptical of the department’s move to invite proposals from private parties to develop, upgrade, operate, maintain and manage the properties for a period of 30 years. The department is also eyeing to develop four other properties- Panthanivas at Keonjhar and Paradip, a part of the Panthanivas at Konark, besides TRC at Gopalpur by roping in private firms. While the tender for Konark and Gopalpur was cancelled a few days back, the bids for the other properties will be opened on May 10.

In 2021, the department had floated tenders for seven properties and except BN Palace and Satapada Yatrinivas, it leased out four of them at Bhadrak, Balasore, Panchalingeswar and Dhauli. There were no takers for BN Palace and Satapada Yatrinivas even then as the department had to revised the tender deadlines twice.  Stakeholders are apprehensive of the BN Palace and Satpada Yatrinivas development plans meeting the same fate this time too.

Stakeholders said not many investors would like to invest in places like Paralakhemundi and Satapada where there is no tourism infrastructure near BN Palace or the yatrinivas.As far as BN Palace is concerned, the department had planned to develop it as a heritage hotel with adherence to guidelines issued by the Ministry of Tourism. Sources in the department said the terms and conditions laid out in the first tender were not acceptable to many agencies which is why there was no participation.

Amid delay in restoration, the grand palace’s condition is deteriorating fast. While the department wants the lessee to develop at least 50 rooms that can be rented out in the property, sources said an investment of at least Rs 10 crore to Rs 12 crore would be required to renovate the dilapidated palace. Similarly, Satapada has no eatery or tourism amenities other than those at the Yatrinivas. “Privatising the property is unnecessary because despite the roadblocks, the Satapada Yatrinivas earns a profit of Rs 8 lakh annually,” said president of OTDC employees association Benudhar Patra.