Himachal Pradesh Will Lease Govt Building As It Has No Funds After Freebies Announcements


Sheetal Bhalerao

Sheetal Bhalerao

Feb 22, 2025


It appears that Himachal Pradesh is now bearing the brunt of the Congress government’s freebies policy after Karnataka.

Himachal Government Plans To Lease Hotel Wildflower Hall

Now, the state’s coffers have dried up and the administration must find alternative methods to produce revenue. 

Considering the scenario, the Himachal Pradesh government has planned to lease out the century-old Hotel Wildflower Hall, which is around 12 kilometres from Shimla.

When it comes to this prized property, it is located in a beautiful neighborhood.

Soon, it will be up for sale again after the state was able to take its possession in January of last year following two decades of legal battle.

First time this property was built by Lord Kitchener in 1902.

It was built under the British Raj and covers 100 acres in the middle of a lush deodar forest. 

In a meeting which was held on 15th February  chaired by Chief Minister Sukhvinder Singh Sukhu, the state cabinet approved the employment of a consulting firm to lease out the property.

Government Accepting Bids From All Over The World

“The cabinet had approved hiring a company to work out further modalities. The company will decide on the best way to lease out the property which would be soon given on lease to the highest bidder,” noted by the Harshwardhan Chauhan, Industries minister.

Since regaining control of the property, the administration has been evaluating means to locate a suitable partner to run the luxury hotel.

As we know that this would help the state, which is currently enduring financial difficulties, generate income. 

Besides this, the Chief Minister Sukhu also implemented a 2005 arbitration award mandating the Wildflower Hall and the surrounding deodar forest be turned over to the Himachal Pradesh Tourism Development Corporation (HPTDC) in June 2023.

Presently, the Oberoi Group operates this property as a world-class, upscale resort.

The government now is eager to entice companies from the hospitality sector to lease it.

The Himachal Government and East India Hotels Ltd (EIHL) have been involved in a judicial battle for nearly two decades over control and profit-sharing of the colonial-era hotel. 

In this regard, the state government has earlier declared that it is open to consider Oberoi Group’s claim to operate the property.

But the government prefers that the company compete with other hotel chains for the Wild Flower Hotel lease, as they will be accepting bids from all over the world.


Sheetal Bhalerao
Sheetal Bhalerao
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