Heritage Property

Heritage Property Allotment Policy
Creation of Heritage Property Bank:
- Suitable old government buildings, Dak bungalows and state notified heritage properties at potential locations are identified
- Identified properties are earmarked for private investment by an Empowered Committee (EC) headed by the Chief Secretary. Other members are Principal Secretary (Finance, Tourism, Forest & Culture) and Secretary of other concerned departments
- De-notification of select state properties is done
- Select properties are transferred at no cost to the Tourism Department
- Detailed study (architectural mapping) of the selected properties, regarding conservable, repairable and replaceable structures, is done through School of Planning & Architecture
- Total station survey of the properties is done

Allotment Process:

- Approval for bidding is obtained from the Empowered Committee
- Reserve price is fixed at INR 1.00 lakh per property with appurtenant land by the Government
- The bidding and allotment process is same as of land bidding
- Online tendering is done on government procurement portal www.mpeproc.gov.in
- Technical bids are examined by a Committee comprising of Director (Investment Promotion), Dy. Director (Finance), Chartered Accountant and Commercial Consultant of the Board
- Financial Bid is opened and examined by a Committee comprising of MD Tourism Board, Accounts Officer of Commissioner (Tourism office), Director (Investment Promotion), Chartered Accountant and Commercial Consultant of the Board
- Department’s approval is obtained on the report of evaluation committee and letter of allotment (LOA) is issued to the highest bidder
- Successful bidder has to deposit the upfront premium within 90 days, produce required performance security (Bank Guarantee) and execute the lease deed
- Land registry is exempted from stamp duty and registration charges
- After registration, possession is handed over to the successful bidder

Major terms & conditions of the lease deed

- Allottee has to submit DPR for conservation and development of the property keeping the structures of architectural importance intact
- Allottee has to retain the heritage character and significance of the building in accordance with the study done by School of Planning & Architecture
- Allottee has to submit a time bound project execution plan with financial and physical milestones
- Lease period is 90 years extendable for further 30 years
- Annual lease rent is 1% of the upfront premium
- Land can be mortgaged to avail loans from Banks/FIs and can be transferred to other operator if sold to other entity by Bank/FI for loan recovery
- Share holding pattern may be changed after starting operation of the project
- Provision to surrender the land within 3 years on deduction of 10% of the premium per year
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