Agartala- The Tripura government has signed a memorandum of understanding (MoU) with Indian Hotels Company Ltd (IHCL), a Tata Group subsidiary, to transform the historic Pushpabanta Palace into a luxury hotel, despite opposition from tribal youth groups, political parties, and even BJP ally Tipra Motha’s chief Pradyot Kishore Debbarma.

The agreement, finalized on Friday, was signed by Kiran Gitte, Secretary of Industries and Commerce, on behalf of the Tripura government, and Jayanta Das, Area Director and General Manager of IHCL. The signing ceremony, held at the Tripura Institution for Transformation, was attended by Chief Minister Manik Saha, Industry Minister Santana Chakma, and Tourism Minister Sushanta Chowdhury.
Under the MoU, IHCL will invest ₹250 crore to develop the Taj Pushpabanta Palace, a five-star hotel featuring around 100 rooms under the Taj Palace brand. While most accommodations will be constructed outside the palace, a few signature suites will be housed within the heritage structure to retain its royal charm.
“Historic milestone”
Calling the MoU a historic milestone, CM Manik Saha highlighted that this is the first instance of IHCL partnering with a government to develop a royal heritage hotel. He said the project aligns with Tripura’s modernization vision, aiming to boost tourism, create around 200 direct jobs, and preserve the legacy of the Manikya dynasty.
Saha further claimed that all concerns regarding the palace’s conversion into a hotel were addressed through discussions before finalizing the agreement.
Opposition backlash
However, the move has faced backlash from Opposition parties, including the CPI(M) and the Congress, who have demanded heritage preservation instead of commercial conversion. Even Tipra Motha’s Pradyot Kishore Debbarma expressed discontent over the decision.
The Pushpabanta Palace, also known as Kunjaban Palace, was built in 1917 by Maharaja Birendra Kishore Manikya. After Tripura’s merger with India, it served as the Governor’s residence till 2018. Notably, the palace was initially planned to be developed into a national-level digital cultural museum, with the foundation stone laid by President Droupadi Murmu in October 2022.
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