Following is an excerpt from a report in Times of India.

The ambitious plan of railways to set up about 100 budget hotels across the country, popularly known as Rail Ratna, has finally got a nod from the Railway Board. Twenty-two of these budget hotels are to be built in the first phase of work which is likely to be taken up soon.

… According to Indian Railway Catering and Tourism Corporation (IRCTC) director Vinod Asthana, it has been decided to commercially exploit the vacant land of railways across the country. The ambitious budget hotel plan will yield good revenue to railways. IRCTC will go ahead with the plan as approved for the first phase of work, he said.

IRCTC MD Nalin Singhale said the proposed budget hotels will be built and developed on public-private partnership basis with a view to promoting tourism and providing full comfort to tourists.

IRCTC has already selected important places where these budget hotels are to be built. These places are Delhi, Varanasi, Ajmer, Jaipur, Bhubaneswar, Allahabad, Darjeeling, Sealdah, Lucknow, Mysore, Mumbai, Ooty, Puri, Amritsar, Shimla, Ujjain, Udaipur, Chandigarh, Kanyakumari, Pune, Nagpur and Agra, he said …

… According to sources, the budget hotel project is likely to yield about Rs 4,000 crore annually to railways on its completion. These hotels will be built on thousands of hectares of the vacant land leased out by the Railway Land Development Authority (RLDA). Railways have roped in reputed companies of the country to invest in such an ambitious project. Tenders have been finalised and awarded to successful bidders at 20 locations at the country level, sources said.

As per the approved plan, each budget hotel is to be developed on the pattern of plush hotels equipped with all modern facilities. IRCTC has already formulated policies with regard to budget hotels, a Railway Board official said.

… Sources said Railway Board is yet to approve the tariff for each room of the proposed budget hotels. Railways are likely to fix Rs 1,000 and Rs 2,000 for each plush room of such hotels per night. IRCTC proposes to provide its own quality catering services in these budget hotels.