DDAs land licensing model bags ₹10,000 cr deal

Mint

2 days ago

New Delhi, Aug 16 (PTI) The Delhi Development Authority (DDA) has awarded the first project under its new Special License Property (SLP) initiative to Fleur Hotels, a subsidiary of Lemon Tree Hotels, officials said on Saturday.
The project is expected to generate approximately ₹ 10,000 crore over a 55-year period.
"DDA had invited bids through a Request for Proposal (RFP) issued on May 2, 2025, for a 2-acre land parcel in Nehru Place earmarked for a five-star hotel. The bidding process, conducted on August 13, saw Fleur Hotels secure the project with an annual license fee offer of ₹ 27.19 crore, about 50 per cent higher than the reserve price of ₹ 18 crore," DDA said in a statement.
This marks a major shift in DDA's land disposal policy. Moving away from the traditional freehold and perpetual lease models, the SLP initiative allows long-term development on an annual license basis.
Reforms set into motion last year by Lt Governor VK Saxena, have yielded spectacular results in terms of revenue generation for the DDA even while facilitating the much needed developments in the capital, the statement added.
According to officials, the ₹ 10,000-crore revenue estimate includes annual fee escalations over the 55-year license term.
"This new model is expected to significantly boost DDA's income, while facilitating key infrastructure development across hospitality, healthcare, logistics, and retail sectors," the statement added.
The project awarded to Fleur Hotels will see the development of "Aurika" at Nehru Place, one of Delhi's largest luxury hotels with over 500 rooms.