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Indian Economy: Growth -2
#76
<b>25 new hotels in Delhi soon</b>

2 June 2005: Pushed by the Delhi government and the Union tourism ministry, the lieutenant-governor of Delhi, B.L. Joshi, has taken a decision in principle to earmark twenty to twenty-five plots for four- and five star hotels in Central and South Delhi.

Officials said that Delhi’s masterplan would be changed to accommodate these new hotels, and there is likelihood that the FAR (floor area ratio) would be increased for them.

Due to the perennial shortage of hotel rooms in Delhi, leading to high rentals, sudden cancellation of reservations, and the consequent distress to tourists, plus the threat that the Capital’s tourism business would flow partly to less choked suburbs, the tourism sector increased the pressure on the government to permit new hotels.

Once the Delhi government and the Union tourism ministry were convinced that sufficient domestic investments would flow to the new hotel projects, the next step of convincing the Union urban development ministry and the lieutenant governor was taken up.
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