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"It will take some time to complete the process," Industrial Reconstruction Minister Nirupam Sen said, adding, "it is not expected to be over by November."
In the meantime, it will be business as usual for the 165-year-old heritage hotel, which has bookings till September.
The landmark hotel has been facing a deep financial crisis for a long time incurring an annual loss of about Rs 2 crore (Rs 20 million) till the last fiscal as the wage bills for staff continued to rise.
West Bengal's cash-strapped Left Front government has been providing an annual subsidy of Rs 3.60 crore (Rs 36 million).
In a bid to tide over the deep financial crisis, the state government floated the early retirement scheme for the hotel's 426 employees with DFID funds, aiming to hand over the property to a private owner.
Although the French hotel chain Accor Pacific initially evinced interest in acquiring the hotel, it later backed out as the issue of absorbing the employees remained unresolved with the unions, mainly the INTUC which controlled majority of the employees, vehemently opposing any retrenchment.
In the midst of the opposition by employees and threats of agitation, the state government took the initial steps in finalising the privatisation programme, appointing consultancy firm Pricewaterhouse Coopers to identify a strategic partner.
Besides Accor Pacific, a number of well-known hospitality chains like ITC group, Claridges, Kenilworth and Sinclairs responded to the expression of interest invited by the state public enterprises department for picking up management and ownership control of the hotel.
Encouraged by the response, the Tourism department went ahead with the introduction of an early retirement scheme for the hotel's 375 regular employees, stated to be a pre-condition for privatisation of the sick hotel.
The ERS, approved by the hotel's board, was to cost Rs 12 crore (Rs 120 million) to the state exchequer. The state government offered the ERS to the employees with the hope that the buyer would not have any liability on the employees' front.
While the government continued negotiations with the main trade unions the INTUC and the CITU in making them accept the ERS, the INTUC remained unrelenting, putting forth one pre-condition after another to safeguard the employees' safety.
The CITU, however, asked its members to accept the ERS, saying it would not take any responsibility of employees who refused to do so.
The government's plans, however, received a shot in the arm on June 25 when the INTUC accepted the ERS clearing the decks for the hotel's selloff.
During a meeting attended among others by Sen and INTUC state president Subrata Mukherjee, the government accepted the six demands put forward by the Great Eastern Hotel Officers and Workers' Association, prompting it to accept the ERS.
The INTUC-affiliated unions demands included payment of three months salary at the time of serving the ERS notice, payment of food allowance as part of the salary, payment of career advancement dues and payment of salaries till implementation of the ERS.
Besides, an additional Rs 25,000 would be paid to each of those whose service has not been regularised despite prolonged continuous service.
It was also decided at the meeting that the government would also request the buyers to give opportunities to employees who are up to 45 years of age at the time of taking ERS.
Describing the INTUC demand as 'genuine' the Industrial Reconstruction Minister said their acceptance of ERS had removed the major hindrance to the Great Eastern Hotel selloff bid.
According to Industrial Reconstruction secretary Sunil Mitra, the government will meet the bidders from July four to six. It will take them about six weeks to submit proposals.
Parties bidding for the hotel include ITC Hotels Ltd, Apeejay Surrendra Group, Claridges, Bharat Hotels Ltd, Ruchi Group, Sinclairs, Unitech Properties, Intercontinental Hotel South East Asia and Ramukscan AV.