Tata group's hospitality arm Indian Hotels Company Ltd (IHCL) will continue to run the Taj Palace Hotel for another 25 years as the Delhi Development Authority (DDA) has renewed the lease.

IHCL and the DDA had originally signed a contract for the construction and licence of the hotel for thirty years effective from 1st of April 1983. Thus, the contract was to expire on March 31 this year.

Following the renewal of the lease contract, IHCL will continue to operate the hotel till 31st of March 2038.

Announcing the renewal of the lease, the company said, "The Indian Hotels Company Ltd (Taj Group) is pleased to confirm that it has received the consent from the Delhi Development Authority (DDA) confirming renewal of the license for the Taj Palace Hotel, Sardar Patel Marg, New Delhi for a further period of 25 years."

Raymond Bickson, managing director of IHCL, said that it had enjoyed a cordial as well as beneficial business association with the DDA over the past years and their renewal of the contract would further strengthen their partnership.

Indian Hotels Company Ltd (IHCL) and its subsidiaries are jointly called as Taj Hotels Resorts & Palaces.