In the first phase of development, DIAL is building an integrated domestic-cum-international airport and a runway, all of which have to be ready by 2010. In the next phase, one more runway has to be built and Centaur lies in the path of this proposed strip. Hence, DIAL had last year told AI that the Centaur will have to be demolished.

``We had asked the airport management to give exact timeframe, as plans to renovate the hotel were on hold. As many as 100 of its 376 rooms are locked as they have become unusable over the years. A Rs 13-crore plan was prepared to renovate 100 rooms, refurbish 50 others and modernise the flight kitchen in the hotel,'' said the official.

Now with DIAL removing the sword over Centaur's head, AI will begin the renovation. For once, this project has not been linked to the Commonwealth Games as the management wants the place to be ready at the earliest and begin cashing in on the massive room shortage here.

Interestingly, the aviation ministry is keen on having the hotel ready for another reason also. DIAL has provided for all range of hotels in the new IGI master plan. Having its own hotel would give an added advantage to the mega national carrier that has been formed by merging AI and Indian Airlines.

But the government knows the hotel -- built in the run up to Asiad 1982 -- would ultimately have to be demolished. ``The aviation ministry has already started discussions with DIAL over where an alternate site would be made available, as also the compensation that would be paid for rebuilding the hotel,'' said a senior official.