Tata Group subsidiary Indian Hotels Company Limited (IHCL) is set to develop a five-star hotel named Taj Pushpavanta Palace in the state of Tripura.

The state government has signed a memorandum of understanding (MOU) with IHCL for establishing the hotel.

Taj Pushpavanta Palace will be constructed on 7.78 acres of land that currently houses the historic Pushpabanta Palace, which will be preserved and integrated into the new development.

The project aims to maintain the palace’s legacy by using it as a reception and public area, while also adding modern hotel amenities.

Tripura chief minister Dr Manik Saha was quoted by Tripurainfo as saying: “This hotel with all the latest facilities will be named ‘Taj Pushpavanta Palace’, keeping the old palace intact and it will be used as only as reception and public area; the old palace will also be renovated.”

The minister also announced that the project will feature four special suites within the palace and an additional 100 rooms built externally. The investment is expected to be around Rs2.5bn ($28.8m).

In addition, Saja highlighted the project’s potential to create more than 200 direct jobs, as well as IHCL’s commitment to enhancing local tourist attractions.

Saha was quoted as saying: “We have taken this initiative under the guidance of Prime Minister Narendra Modi and this will usher in a new era for the state in the promotion and development of tourism.”

IHCL’s expansion in the northeast region of India was demonstrated in December 2023 with the opening of Vivanta Arunachal Pradesh, Tawang.

This new establishment added 80 rooms and suites, dining options, and a lounge bar to the company’s portfolio.