Gujarat Hands Management of Ambaji, Dwarka, Somnath Circuit Houses to Private Players

The Gujarat government has outsourced the management of three key state-owned circuit houses in Dwarka, Somnath and Ambaji to a private firm, McVey Management, under a contract worth roughly ₹1.5 crore.

The arrangement splits accommodation access down the middle, with a sharp tilt towards commercial bookings. McVey Management will handle and book 75% of the rooms across the three properties, while the government retains control over the remaining 25% reserved for ministers, MLAs, senior officials, journalists and designated government guests.

High-Profile Pilgrimage Hubs Handed Over

While Gujarat maintains around 100 circuit houses statewide, the Roads and Housing Department selected three of its highest-profile locations for the pilot project. Dwarka, Somnath and Ambaji draw millions of pilgrims and tourists annually from across Gujarat, India and abroad, driving constant demand for quality lodging. Notably, the facilities at Dwarka and Somnath were constructed just four years ago at a cost exceeding ₹50 crore each.

Addressing the rationale behind outsourcing, a senior official from the Roads and Housing Department noted that the three circuit houses recorded an average annual occupancy of only about 25%. Officials maintain that private operation will upgrade room service, standardise maintenance, and overhaul overall facility management.

"The arrangement will be closely monitored to ensure that government guests continue to receive proper accommodation," the department stated, adding that the state holds the right to cancel the contract if serious complaints arise.

Public Assets or Private Profit?

The policy shift has sparked debate over the intended role of state infrastructure. Critics and observers have questioned whether monetising government properties signals a management failure within state departments or a pragmatic step toward operational efficiency.

For decades, circuit houses have functioned as secure, regulated spaces for public servants on official duty. Opponents argue that converting 75% of these landmark properties into commercial operations threatens their traditional dignity and purpose, effectively turning government guest houses into private hotel ventures.