The Mangaluru lighthouse hotel project at Hoige Bazaar has received government approval, with the Karnataka Water Transport Board planning a ₹60.34-crore three-star hospitality facility on 1.5 acres through a public-private partnership model.
The proposed development will include at least 35 rooms and is intended to turn the currently vacant lighthouse area into a coastal tourism and hospitality destination. The project is being planned under the design-build-finance-operate-transfer model, under which the selected private contractor will develop, operate and maintain the facility before transferring it under the agreed concession arrangement.
A Karnataka Water Transport Board official told Prajavani that the board had initially considered developing the site as a museum. That proposal was later reconsidered after the board assessed that it might not be financially viable. The revised plan will retain the lighthouse as the central feature while preserving its historical value and using it as a tourist attraction.
The project is expected to generate an internal rate of return of 18.32 per cent, according to the report. The selected concessionaire will be required to build a three-star hotel, or a facility of an equivalent or higher category, and share a specified portion of total revenue with the government. The minimum reserved revenue share payable to the government has been fixed at 2 per cent.
The private partner will also have to provide performance security equal to 5 per cent of the project cost. The board plans to hand over its land in its existing condition. The concessionaire will receive 30 months to secure the required permissions and fulfil preliminary conditions, while 24 months has been allocated for construction. After completion, the private operator will be responsible for operating and maintaining the hospitality facility for 30 years. Any extension would be considered by the government based on service quality.
The project will require approvals from multiple authorities before construction can proceed. These include clearance from the Karnataka Coastal Zone Management Authority and coastal regulation zone approval from the Ministry of Environment, Forest and Climate Change. The concessionaire will also be responsible for obtaining building plan approval from the town planning division of Mangaluru City Corporation or the Mangaluru Urban Development Authority, as well as fire safety clearance from the competent authorities.
Dakshina Kannada Deputy Commissioner Darshan H.V. said the lighthouse would serve as the focal point of the development. He told Prajavani that lighthouses are major attractions at several coastal tourism locations, where museums and related visitor infrastructure have been developed. The administration intends to make the Hoige Bazaar lighthouse a similar visitor centre.
The district has a 38-kilometre coastline, and several tourism projects are being planned to use the coastal belt for tourism activities. Implementation responsibilities have been distributed among the Tourism Department, the Karnataka Water Transport Board, Mangaluru City Corporation and other departments, the deputy commissioner said.
The next stage will involve selecting the private concessionaire and securing the statutory approvals required for the site. Construction will be subject to the completion of those permissions and the conditions set out in the concession agreement.
