INDIA BUSINESS WORLD - JULY 2006
THE MONTH THAT WAS...

EIH BUYS 67% OF PALACE ON WHEELS

OBEROI group's East India Hotels has taken a 67% stake in the Palace-on-Wheels super luxury train project in Rajasthan— expected to go on rails in September 2008—with a project cost of around Rs 60 crore.

The remaining equity will be equally distributed between Rajasthan Tourism Development Corporation (RTDC) and Indian Railways. Dubbed Royal Luxury, a seven-day sightseeing tour of Rajasthan on this luxury train can set one back by over Rs 2 lakh.

A second Place-on-Wheels service is slated to be launched mid-2007, with a project cost of around Rs 30 crore.

Currently a booking on the weekly Palace-on-Wheel service, popular with foreign tourists and NRIs, comes for anywhere between Rs 1 lakh and Rs 2 lakh.

It starts off from New Delhi and passes through Jaipur, Jaisalmer, Jodhpur , Udaipur , Bharatpur and then Agra .

Vinod Zutshi, Secretary Tourism, Rajasthan Government said that these new trains will help to attract more high-end foreign tourists into the state. He said the state government's joint venture with East India hotels is first of its kind in the country.

The hospitality chain is expected to manage and maintain the luxury train and modalities for the same as also the revenue share between the partners are being worked out, Mr Zutshi added. Rajasthan receives almost one third of all foreign tourists who visit the country.