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Railways to set up 100 budget hotels

Tenders have already been issued for five hotels at Sialdah, Chandigarh, Madurai, Secunderabad and Vijaywada.

india Updated: Apr 04, 2006 13:17 IST

After a marked improvement in its financial health, the Indian Railways plans to build over 100 budget hotels on its vacant land near railway stations across the country.

"We want to construct over 100 budget hotels across the country for people who travel by trains extensively and provide them facilities to stay comfortably," P K Goel, Executive Director of Indian Railways Catering and Tourism Development Corporation, said in an interview.

This is keeping in view the fact that the railway traffic is growing over 17 to 18 per cent and Railway Minister Lalu Prasad Yadav's decision to provide adequate amenities to its passengers in trains as also at the stations.

Prasad's step was motivated by the "turn-around" of Railways lately, which by the end of 2005-06 has generated an additional revenue of over Rs 11,000 crores.

Goel said construction of budget hotels on the Railway's land would be undertaken by IRCTC under the scheme "Public- Private Partnership".

The IRCTC chief said of the total 100 such hotels planned, 44 have already been permitted to go ahead with the scheme. Tenders have already been issued for five hotels at Sialdah (West Bengal), Chandigarh (Punjab), Madurai (Madras), Secunderabad and Vijaywada (Andhra Pradesh).