News

NRI brings big money to Bengal power, hospitality sectors

Wednesday, 30 July 2003, 00:00 Hrs

KOLKATA: A young non-resident Indian, who has made his money as a leading restaurateur in Southeast Asia, is investing big time in West Bengal's power, hospitality and entertainment sectors.

Jakarta-based Prasoon Mukherjee, whose business spans six countries, is setting up a 10.5 megawatt (MW) power plant and is poised to build a state-of-the-art multiplex here.

But the biggest deal that he is looking to swing in his favour is control of one of Asia's oldest hotels, which the state government wants to lease out to private investors.

Built by the British, the Great Eastern Hotel is the oldest in the city, has about 400 employees and many tenants in its long shopping arcades.

The hotel, once considered the jewel in the city's hospitality crown, now has an occupancy rate of just 30 percent.

Chief Minister Buddhadeb Bhattacharya indicated his interest in handing over the hotel to Mukherjee. Last week, the government cancelled the bids of three hospitality majors.

"We are 95 percent sure the government is interested in us. The chief minister has asked for a report and we will prepare it in two months, detailing the terms and conditions of the deal," Mukherjee, 42, told IANS.

Mukherjee's Universal Success has proposed bringing in a consortium of three companies to acquire the heritage hotel.

"We will need an investment of around $50 million to get the hotel going nicely," he said.

He added that the chief minister had assured him of handling the issue of rehabilitating the existing workers, something that had scared away investors in the past.

The government has been trying to lease out the loss-making hotel on a 30-year lease since mid-1990s.

Though his primary interest was in acquiring the hotel, Mukherjee eventually also agreed to invest in a power plant near Asansol at the chief minister's request.

He has signed the deal for the 10.5 MW project. The Dishergarh Power Supply Company (DPSC) will buy back the captive power produced at the plant.

"Universal Success is building the plant in collaboration with Indonesia's leading power company Kaltimex Energy and we hope to get it commissioned within one and half years from zero date," Mukherjee said.

The project cost is estimated at $12 million.

"We are giving land for the project. After the new power law waived certain restrictions in setting up of new power plants, we were looking for a power plant," DPSC director and chief executive S. Radhakrishnan told IANS.

Mukherjee said once the plant got up and running, its capacity could be increased. "If all goes well, we will add to its capacity," he said.

Besides power, Mukherjee has set his sights on building a $8 million multiplex in the city. "The government has promised me land. The multiplex will have cinema, restaurants, amusement centres and shopping malls."

"The three projects together can create 1,000 jobs. We want more people to invest seeing us," said Mukherjee, whose rags-to-riches story were spun more than two decades ago in the by-lanes of a central Kolkata neighborhood.

Universal Success runs 21 outlets of the U.S.-based chain Outback Steakhouse, one of the world's best casual dining restaurants, in South East Asia.

He runs Outback restaurants in Kuala Lumpur, Hong Kong, Bangkok, Manila and Jakarta and has growing business interests in Bangladesh and India.

Source: IANS

Don't Miss ( 1-5 of 15 )