The Mangaluru lighthouse hotel project at Hoige Bazar has received government approval under a public-private partnership framework, with the Karnataka Jal Transport Board planning a three-star hospitality facility on 1.5 acres of land near the city’s lighthouse. The proposed project is estimated to cost ₹60.34 crore and will include at least 35 rooms.
The board has prepared the project framework under the design, build, finance, operate and transfer model. A private contractor will develop and operate the facility, while retaining responsibility for its maintenance for 30 years. The project is expected to generate an internal rate of return of 18.32%, according to an official quoted by Prajavani.
The Hoige Bazar lighthouse area is currently vacant. The board initially considered developing the site as a museum but later decided to retain the lighthouse as the central feature while adding hospitality and tourism infrastructure around it. The stated objective is to preserve the lighthouse’s historical value and use it as a visitor attraction.
The selected contractor will receive the board-owned land in its existing condition. The contractor will be given 30 months to obtain necessary permissions and fulfil preliminary conditions, while 24 months have been allocated for construction of the infrastructure. The project will have to include a three-star hotel, a facility equivalent to that category or a higher-rated hotel.
Under the proposed arrangement, the contractor will pay the government a specified share of total revenue, with the minimum reserved revenue share fixed at 2%. The contractor will also be required to provide performance security equivalent to 5% of the total project cost. Any extension of the concession period will be considered by the government based on the quality of services provided during the initial contract period.
The project will require several statutory clearances before construction can begin. These include approval from the Karnataka Coastal Zone Management Authority, coastal regulation zone clearance from the Ministry of Environment, Forest and Climate Change, building plan approval from the urban planning wing of Mangaluru City Corporation or the Mangaluru Urban Development Authority, and fire safety clearance from the competent authorities. The contractor will be responsible for obtaining these approvals.
Dakshina Kannada Deputy Commissioner Darshan H.V. told Prajavani that the lighthouse would be developed as the focal point of the tourism project. He said plans were being prepared to use the district’s 38-kilometre coastline for tourism activities, with implementation responsibilities divided among the Tourism Department, Karnataka Jal Transport Board, Mangaluru City Corporation and other departments. The next steps are the selection of the private contractor and completion of the required statutory approvals before construction begins.
