Pending since 1994, Shirorda-Velagar five-star hotel project gets green light

The long‑delayed five‑star hotel venture at Shirorda‑Velagar in Sindhudurg district has taken a concrete step toward realization after a tripartite accord was signed by the Maharashtra Tourism Development Corporation (MTDC), Indian Hotels Company Limited (IHCL‑Taj Group) and the Shirorda‑Velagar Landowners’ Co‑operative Society Limited.

Key Takeaways

• A long-delayed five-star hotel project at Shirorda-Velagar, Sindhudurg, advanced via a tripartite pact between MTDC, IHCL and the local landowners’ cooperative.
• The signing was attended by Maharashtra CM Devendra Fadnavis and Deputy CM Eknath Shinde at Mantralaya.
• The project has been stalled since 1994, when the Sindhudurg District Collector first acquired land for the initiative.
• This marks a pivotal step forward for a tourism initiative delayed for over three decades.

The signing ceremony occurred at Mantralaya, attended by Maharashtra Chief Minister Devendra Fadnavis, Deputy Chief Minister Eknath Shinde, Tourism Minister Shambhuraj Desai, Sindhudurg Guardian Minister Nitesh Rane, former minister and MLA Deepak Kesarkar, and senior officials.

This development marks a pivotal advance for a tourism initiative that has been stalled for more than thirty years.

The concept of establishing a five‑star tourism facility at Shirorda‑Velagar originated in 1994, when the Sindhudurg District Collector acquired private land on behalf of MTDC. Subsequently, government parcels in the vicinity were allocated to the corporation, expanding the project’s landholding to 54.40 hectares.

The project received renewed impetus after a meeting chaired by Tourism Minister Shambhuraj Desai on December 23, 2025, which granted in‑principle approval for an agreement involving the state government, MTDC, IHCL and the affected landowners.

Further clearance followed at MTDC’s 177th Board of Directors meeting on April 28, 2026, where property‑related approvals were granted. The Maharashtra government then authorised the execution of the agreement with IHCL on June 30, 2026.

Under the terms of the tripartite agreement, IHCL will remit a total of ₹60 crore to the landowners in three installments, calculated at ₹1.44 crore per hectare.

For the 23.88‑hectare parcel designated Plot B‑1, the first tranche will amount to roughly ₹34.41 crore.

The agreement also incorporates measures to generate employment and enhance skills for the local populace. Preference will be given to eligible project‑affected individuals for job placements, while the Taj Group will organise or support training programmes aimed at improving employability among area youth.

The envisaged five‑star hotel is expected to bolster Sindhudurg’s hospitality framework and promote the district as a tourism hub. It aims to create local jobs, stimulate economic activity and attract both domestic and international tourists to the region.

Enhanced connectivity will underpin the hotel’s tourism appeal. The site lies approximately 30‑45 minutes from Sindhudurg Airport (Chipi) and about an hour from Manohar International Airport at Mopa, Goa, offering convenient access from domestic and international markets.

The agreement was executed by MTDC Managing Director Nilesh Gatne and Senior Manager Sanjay Dhekne; IHCL Managing Director and CEO Puneet Chhatwal together with Executive Vice President Rajendra Mishra; and representatives of the Shirorda‑Velagar Landowners’ Co‑operative Society Limited.

By clearing a major obstacle, the accord brings the long‑standing Shirorda‑Velagar proposal nearer to fruition and positions it within Maharashtra’s broader strategy to upgrade tourism infrastructure along the Sindhudurg coastline.