Update: The Orissa government’s tourism web page has additional information on the Shamuka beach project.

Following is an excerpt on this from Expresshospitality.com.

Shamuka Beach in Orissa near Puri is being developed as a high-end luxury tourism destination by the Orissa Tourism Development Corporation. The department has acquired a 1000 acre property south of Puri, and is in the process of acquiring 2000 acres more. It is a natural island and is being developed by the name Shamuka Beach project. Divulging further details about the project, Asit K Tripathi, secretary, Orissa Tourism, says, "It is going to be one of India’s best integrated, dedicated and up market tourism project, with only 5-star hotels. We had advertised and the response has been overwhelming. We have got responses from leading players in the country as well as abroad. ITC-Welcomgroup, the DLF-Hilton combine, Taj Hotels Resorts and Palaces, IHHR’s Ananda Spa, Casino Group of Hotels Earth (CGH Earth), The Oberoi Group, Apeejay Surrendra Group, Marriott International, and Carlson Hotels Asia Pacific have all shown interest. We can allot land to approximately 20 national and international hotel brands. We are coming out with a blue print to develop infrastructure. The third stage will be to establish a golf course and convention center. This will raise the value of Orissa as a leisure destination." "Although we have 934 hotels in Orissa and 2000 rooms, the majority cater to primarily low spending groups, and the rest target high spending tourists or corporates. With this initiative, within 1-2 years, we will have more quality rooms," says Devi Prasad Mishra, tourism minister, Orissa. Samukha Beach and Puri, as well as industrial growth centers like Paradeep, Talcher, Kalinganagar, as well as Jharsuguda and Angul have generated interest from the hospitality industry in recent times – especially budget hotels and business hotels. The no-frills brand of The Indian Hotels Company, Ginger Hotels opened their first hotel in Bhubaneshwar. Carlson Hotels Asia Pacific plans to open its Radisson Hotels & Resorts in Chilika, Puri and Bhubaneswar. Cabana Group, the master licensee of the world-renowned chain of hotels – Best Western International from California is setting-up an international standard culinary college cum 5-star property in Bhubaneswar, and is eyeing Puri to develop the brand.