Speaking to The Financial Express, Sahara spokesperson Shyamal Das denied rumours that Sahara has tied up with former Indian Hotels chairman Ajit Kerkar to bid for the hotel. However, Das confirmed that Kerkar is a consultant with Sahara India.

"But his bid for the hotel is in personal capacity. We had received a request from the government about Great Eastern. We are interested in tourism projects in West Bengal, in the Sunderbans and Darjeeling," he said.

In January 1999, the state government had advertised for a partner to run the hotel on a joint venture basis. The bidders included Accor Asia Pacific, Hyatt, Ajit Kerkar and Satish Kumar. They have been asked to provide more data regarding their proposals. "We have given them time till March 26 to come up with more details. The committee will considereverything after March 31 only," West Bengal government's director for tourism RC Mahapatra told The Financial Express.

Sources said while the state government is looking at a Rs 5 to 6 crore separation package for the workers of the 160-year old heritage hotel, the packages offered by the bidders are probably in the Rs 2 to 3 crore range.

This could pose a serious problem in reviving the hotel on a joint venture basis as the trade unions have already declared their opposition to the process of tendering.

In the last one-and-a-half years, Great Eastern Hotel has seen a lot of growth in business and improvement in bottomline. According to sources, it might break even in the current fiscal. A major factor plaguing it is the mounting dues from the state government.