The Indian Railway Catering and Tourism Corporation (IRCTC) would set up budget hotels as part of its tourism promotion activities in Orissa.

Accordingly, the IRCTC will begin work on a budget hotel in Bhubaneswar from October 2, the land for which has been allotted by the Government near the Bhubaneswar Railway Station. The 100-room hotel will have a restaurant and the room tariff will range between Rs 500 and Rs 700. Land has also been sought from the Government for setting up another hotel at Puri.

The IRCTC has planned to set up the hotel on build, operate and transfer (BOT) basis. “Once the construction is done through tender process, the hotel will be handed over on a long-term lease of 30 years,” Biswas said.

The IRCTC also held discussions with the Tourism Department on using government-run Panthanivases and Yatrinivases for promoting rail tour and holiday packages. “We also had a meeting with tourism authorities on using state-run hotels for accommodation of IRCTC tourists,” he said.

IRCTC also plans to set up of youth hostels in Orissa. For the purpose, the IRCTC has sought land from the State Government at tourist draws like Bhubaneswar, Sambalpur, Puri, Gopalpur and Bhitarkanika.