India's Uttar Pradesh state mulls $3.9 billion investment in hospitality and tourism
Religious tourism surged in the state following the Ayodhya Lord Ram temple consecration on Jan. 22
By Vishnu Rageev RApr 21, 2024
The Indian state of Uttar Pradesh eyes investments of more than $3.9 billion (Rs 32,000 crore) in the hospitality and tourism sector, according to a report published in Business Standard. The investment could create an additional 80,000 accommodation units through hotels and resorts, addressing the room availability deficit.
Religious tourism surged post the consecration of the Lord Ram temple in Ayodhya on Jan. 22. Uttar Pradesh anticipates an annual tourist footfall of 850 million by 2028, emphasizing the expansion of hospitality units in tourism hubs like Varanasi, Ayodhya, Prayagraj, and Agra, Business Standard daily reported.
“To cater to this increasing demand, the state is looking to create a robust supply of accommodation units with the development of hotels, resorts, and homestays,” a government official was quoted as saying in the report.
Heritage properties like forts and palaces are being offered to the private sector for development, the business daily said. The state is encouraging homeowners to enlist their properties for homestays, while the owners of heritage properties are being invited to convert their precincts as heritage hotels for discerning tourists.
Uttar Pradesh tourism and culture minister Jaiveer Singh said that the state offers subsidies under the Tourism Policy 2022 for establishing distinctive countryside farm stays.
"Selected villages are transformed into rural tourism centers under this initiative," Singh said.
The state focuses on diversifying tourism experiences by developing adventure tourism, MICE (meetings, incentives, conferences and exhibitions), wellness, and ecotourism offerings, the media report said. In fact, about 500 tourism and related infra projects have already been launched in Ayodhya, Varanasi, Vrindavan, Prayagraj, Kushinagar, and Mirzapur pertaining to hotels, resorts, guest houses, and infra development.
Global hospitality chains BWH Hotels and Hyatt Hotels Corp. are expanding in India. BWH's New Delhi franchisee, Sorrel Hospitality, aims for 51 hotels in Sri Lanka, Bangladesh, and India by 2024. Hyatt plans to expand its brands in India and Southwest Asia with eight new hotels in 2024, focusing on Hyatt Regency, Hyatt Place, and Hyatt Centric.
Tata Sons and Tata Trusts formed a $58 million welfare trust for victims of the June 12 Air India crash, contributing $29 million each.
Tata Sons, established in 1917 and registered in Mumbai, is the Tata Group’s holding company; Tata Trusts collectively own 66 percent of it.
Tata Sons reacquired 100 percent of Air India in January 2022 through its subsidiary Talace Pvt Ltd.
TATA SONS ESTABLISHED a $58 million, or Rs 500 crore, welfare trust for victims of the June 12 Air India crash. The AI-171 Memorial and Welfare Trust is registered in Mumbai.
The Air India flight from Ahmedabad to London crashed shortly after takeoff, killing 260 people, including 19 on the ground. A preliminary report by the Aircraft Accident Investigation Bureau found that fuel supply to the engines was cut off. A crane is removing the tail section from the wreckage.
Tata Sons and Tata Trusts have each committed $29 million or Rs 250 crore to the trust, Tata said in a statement. The fund will provide $116,100, or Rs 1 crore, as ex gratia to the families of those who died. It also will support medical treatment for the injured and reconstruction of the B.J. Medical College Hostel, which was damaged in the crash.
The trust will be managed by a five-member board of trustees. The first two appointees are S. Padmanabhan, a former Tata executive and Sidharth Sharma, General Counsel at Tata Sons. Additional trustees will be appointed. The trust will begin operations after registration with tax authorities and completion of other formalities.
Air India was founded by J.R.D. Tata and began operations on Oct. 15, 1932. The Government of India nationalised it in March 1953, taking full ownership from Tata Sons. In January 2022, Tata Sons reacquired 100 percent of Air India through its subsidiary Talace Pvt Ltd.
Tata Sons Pvt Ltd., established in 1917 and registered in Mumbai, is the holding company of the Tata Group. It holds stakes in all group companies and owns the Tata trademarks. Tata-branded companies operate under the Brand Equity and Business Promotion Agreement, which requires adherence to the Tata Code of Conduct and Tata Business Excellence Model.
Tata Trusts, endowed by Tata family members, collectively own 66 percent of Tata Sons. The largest trusts include the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust. Tata Trusts appoint one-third of the Tata Sons board and hold significant governance influence. Noel Tata was appointed chairman of Tata Trusts in October 2024 and joined the Tata Sons board in November 2024.
Tata Group companies employed more than 1 million people in 2023–24 and recorded total revenue of $165 billion. As of March 31, 2024, the 26 listed Tata companies had a combined market valuation of $365 billion, according to the group’s website.
N. Chandrasekaran has served as chairman of Tata Sons and Tata Group since January 2017.
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Air India to partially restore international wide-body schedule from Aug. 1 after 15 percent cut following June 12 AI 171 crash.
Delhi–New York (JFK) and Mumbai–New York (JFK) cut to six weekly; Delhi–Newark to four.
Revised schedule takes effect in August; full restoration expected from October.
AIR INDIA WILL partially restore its international wide-body schedule from Aug. 1, following a 15 per cent reduction after the June 12 crash of flight AI 171 on the Ahmedabad to London Gatwick route, operated by a Boeing 787. Delhi to New York’s JFK International Airport and Mumbai to New York (JFK) will operate six weekly flights each, down from seven, while Delhi to Newark, New Jersey, will drop to four from five.
The announcement follows the release of the preliminary report on the AI 171 crash, which killed 260 people—241 of 242 passengers and 19 on the ground. The report identified the primary trigger as both engine fuel control switches moving from “RUN” to “CUTOFF” in quick succession after lift-off. Investigators are examining the cause of this transition. The report found no fault with Air India and made no recommendations for other Boeing 787 or GE engine operators.
Following the Directorate General of Civil Aviation’s mandated safety inspections of Air India’s 787 fleet, the airline conducted its own checks and adopted a cautious operating approach, resulting in delays and cancellations in the following week.
Safety pause and partial restoration
Air India announced a 15 percent cut in international wide-body flights on June 18. Airspace closures over Pakistan and parts of West Asia, along with night curfews at several overseas airports, added to the disruption.
“The safety pause enabled Air India to conduct additional precautionary checks on its Boeing 787 aircraft and accommodate longer flying times due to airspace closures over Pakistan and the Middle East,” the airline said. “The partial resumption will restore some frequencies from 1 August, relative to July, with full restoration planned from Oct. 1.”
The restoration includes changes to the earlier schedule.
“As the schedule reductions implemented as part of the Safety Pause were in effect until July 31 and the restoration to full operations is being phased, some services initially planned between Aug. 1 and Sept. 30 will be removed from the schedule,” the statement said. “Air India is proactively contacting affected passengers to offer rebooking on alternative flights or a full refund, as per their preference. Air India apologizes for the inconvenience.”
OYO is working with travel platform Yatra to expand in the business travel segment in Delhi-NCR, Mumbai and Bengaluru, with more than 500 hotels already added.
Hotels under OYO brands—Sunday, Palette, Clubhouse, Townhouse, Townhouse Oak and Collection O—are now available on Yatra for business travellers across India.
OYO plans to add 1,000 more serviced hotels by September, expanding Yatra’s inventory in emerging metros with growing business travel demand.
OYO IS WORKING with travel agent platform Yatra to expand in the business travel segment, focusing on Delhi-NCR, Mumbai and Bengaluru. More than 500 OYO-operated hotels have reportedly been added to Yatra's platform as part of the alliance.
OYO CEO Ritesh Agarwal also chairs G6 Hospitality, parent of Motel 6 and Studio 6, while Yatra is led by cofounder and CEO Dhruv Shringi.
“While direct demand continues to be our mainstay, contributing nearly 80 percent of our total business, we are now looking to tap into a niche segment of business travellers exploring emerging business hubs,” said Varun Jain, OYO’s chief operating officer, according to PTI. “This partnership also opens up opportunities to serve companies adopting blended travel programs—combining business and leisure—and flexible mobility plans aimed at improving cost efficiency and employee productivity.”
Hotels under OYO’s brands—Sunday, Palette, Clubhouse, Townhouse, Townhouse Oak, and Collection O—have been onboarded to Yatra’s platform for business travellers across India, the companies said in a statement. OYO plans to add 1,000 more company-serviced hotels to the platform by September.
This will expand Yatra's inventory in emerging metros where demand for accommodation is rising due to increased business travel, the statement said.
India's business travel spending reached ₹38.2 billion in 2024, ranking eighth globally and fourth in Asia-Pacific. Spending is expected to return to pre-2019 levels by 2025, driven by economic growth, corporate earnings, and demand for in-person meetings, the statement said, citing a Global Business Travel Association study.
OYO added 50 new DanCenter units, its European vacation rental brand, across India in the first quarter of financial year 2026. It plans to add 200 more homes by the end of the financial year, expanding its presence in the vacation rental market.
Radisson Hotel Group is expanding youth training in India to mark World Youth Skills Day on July 15, training more than 300 individuals in hospitality roles.
The initiative includes 70 participants from Jammu & Kashmir, with 34 per cent women.
About 70 per cent of RHG’s General Manager roles are filled internally, supported by Radisson Academy Online and Typsy, which have delivered over 92,000 training hours and 111,000 certificates.
RADISSON HOTEL GROUP expanded its youth training and employment programs in India to mark World Youth Skills Day on July 15. The company is working with the Tourism & Hospitality Skill Council and The Job Plus to train more than 308 individuals in hospitality skills across India.
Belgium-based RHG, with 130 operational hotels and 77 in development in India, is expanding its footprint and investing in industry talent, the company said in a statement.
“Empowering India’s youth through structured [skills training] is central to our long-term growth strategy,” said Nikhil Sharma, RHG’s managing director and COO for South Asia, according to Economic Times. “These programs not only uplift individuals but also build resilience in the broader hospitality ecosystem.”
The company is providing training in front office operations, housekeeping and F&B service, the statement said. Each participant completes 300 hours of training and receives certification under the National Skills Qualification Framework at Level 4. The initiative includes 70 participants from Jammu and Kashmir districts such as Kathua, Rajouri, Doda, Katra and RS Pura. Of this group, 34 percent are women.
RHG supports the Youth Employment Program of the Sustainable Hospitality Alliance, which provides practical training across hotel departments for underprivileged youth, the statement said. About 85 percent of participants have secured jobs with RHG or other hospitality brands. The company also launched a five-month frontline talent development program with Heinz Pro and Job Plus, covering soft and technical skills. It has also partnered with institutions such as the Institute of Hotel Management to provide internships and practical training.
Around 70 percent of RHG’s general manager roles are filled internally, supported by Radisson Academy Online and the Typsy platform, which has delivered more than 92,000 training hours and 111,000 certificates, the company claimed.
In March, RHG announced plans to expand its India portfolio to 240 hotels by 2025, up from 129, with 72 in the pipeline. The growth is guided by a five-year plan launched in 2018 and updated annually, which has quadrupled revenue and development.
A preliminary report on the June 12 Air India crash in Ahmedabad found fuel to the airplane’s engines was cut off.
One pilot asked the other why he cut off fuel, the other denied it.
Air India will cut international widebody service by 15 percent through mid-July after the crash.
INDIA’S AIRCRAFT ACCIDENT Investigation Bureau’s preliminary report found that fuel to the Boeing 787-8’s engines was cut off, indicating pilot action may have caused the crash. No actions are recommended for Boeing 787-8 or GEnx-1B operators at this stage.
The preliminary report, led by Indian authorities with experts from Boeing, General Electric, Air India, Indian regulators and participants from the U.S. and UK, raises several questions. The 15-page report stated that seconds after liftoff, both engine fuel control switches shifted from "RUN" to "CUTOFF" one second apart, shutting off fuel and causing engine failure.
Air India Flight AI 171, bound from Ahmedabad to London carrying 230 passengers and crew, crashed minutes after takeoff on June 12, killing 260 people in one of the deadliest aviation incidents in India in recent years.
The flight lasted about 30 seconds. The cockpit voice recorder captured one pilot asking the other why the "cut-off" was triggered, with the response denying responsibility. The recording does not identify who spoke.
At takeoff, the co-pilot was flying while the captain was monitoring. The switches were reset to their normal inflight position, triggering automatic engine relight. At the time of the crash, one engine was regaining thrust while the other had relit but had not yet restored power.
Aviation experts and Indian netizens have questioned both the report and Western media coverage that places sole blame on the pilots. The Pilots’ Association of India has objected to the investigation’s direction, alleging it presumes pilot guilt.
Fuel samples from the bowsers and tanks used to refuel the aircraft were tested at the DGCA lab and found satisfactory. Only a small amount of fuel was recovered from the APU filter and the left wing refuel/jettison valve. These samples will be sent to a facility equipped to test minimal quantities.
The report stated that the investigation team will review additional evidence from stakeholders.
Media reaction
After the report’s release, several media outlets attributed the crash to pilot error, naming Captain Sumeet Sabharwal, 56, and First Officer Clive Kunder, 32. The BBC headlined its story, “Pilot cut off fuel to engine — no fault with plane,” implying pilot responsibility, according to an Instagram post by Indian Pilot. Some reports also suggested the crash may have been a suicide.
The AAIB’s findings and their coverage drew criticism from the aviation sector. On Saturday, the Airline Pilots’ Association of India-I condemned the report’s “tone and direction,” alleging bias toward blaming the pilots.
“The investigation appears biased toward pilot error. ALPA-I rejects this presumption and demands a fair, fact-based inquiry,” said ALPA-I President Sam Thomas.
The association also reiterated its request to be included in the investigation as observers.
“We call upon media organisations and public commentators to act with restraint, empathy and respect for due process,” the ICPA said in a statement. “The crew of AI 171 acted in line with their training and responsibilities under challenging conditions. They deserve support—not vilification based on conjecture.”
The ICPA expressed “unwavering support” for the crew and criticised speculative narratives, particularly the insinuation of suicide.
“There is absolutely no basis for such a claim at this stage. Invoking such an allegation based on incomplete information is irresponsible and deeply insensitive to the individuals and families involved,” it said.
Ongoing investigation
Following the report’s release and the resulting debate, Union civil aviation minister Ram Mohan Naidu Kinjarapu clarified that the findings are preliminary and the matter remains under investigation, according to Times of India.
However, the report leaves key questions unanswered. It confirms that the engine fuel control switches moved from “RUN” to “CUTOFF” but does not explain how or why this occurred.
Former IAF director Sanjeev Kapoor called the report incomplete regarding the fuel switches.
“It is bizarre to suggest that any sane pilot would deliberately operate the fuel cut-off switches right after takeoff,” he told India Today. “Why would a pilot, having just lifted off manually, turn the aircraft 170 degrees just to shut down the engines? It defies logic.”
The investigation is ongoing, according to the agency. The team will review additional records, evidence, and information from stakeholders. The final report is expected in the coming months.
In June, Air India announced a 15 percent reduction in international widebody operations through at least mid-July following the crash.