Centre approves disinvestment of two more ITDC hotels

Centre approves disinvestment of two more ITDC hotels


The Centre on Wednesday approved the transfer of Hotel Gulmarg Ashok, an incomplete project in Jammu and Kashmir, to the state government as part of its policy to disinvest the Indian Tourism Development Corporation's (ITDC) properties and units.

The Cabinet Committee on Economic Affairs (CCEA), also gave its nod to the transfer of another ITDC unit in Patna, Hotel Patliputra Ashok, to the Bihar government. Prime Minister Narendra Modi chaired the CCEA meeting.

The incomplete project of Hotel Gulmarg Ashok and Hotel Patliputra Ashok were handed over to the Jammu and Kashmir and Bihar governments respectively, as the two states did not agree to the Centre's proposal for leasing or sub-leasing of the hotels.

“As per the disinvestment policy of the Government of India, it had been decided to lease/sub­-lease the ITDC hotels/properties/units/joint ventures (JVs) jointly with the state governments,” the government said in a statement after the meeting.

Where the state governments do not agree to the proposal of leasing/ sub-leasing, the government's disinvestment policy provides for returning the properties back to the respective states "at its officially valued price," it added.

“The policy had been formulated keeping in view that running and managing hotels on professional lines is not the job of the government or its entities,” it added.

With the CCEA decision, the government has approved disinvestment of a total of nine ITDC hotels so far.

Under the government's disinvestment policy, the ITDC has already transferred Hotel Lalitha Mahal Palace, Mysore; Hotel Lake View Ashok, Bhopal; Hotel Brahmaputra Ashok, Guwahati; Hotel Bharatpur Ashok, Bharatpur; Hotel Donyi Polo Ashok, Itanagar; Hotel Jaipur Ashok, Jaipur to the respective state governments.

The ITDC's Hotel Janpath in New Delhi was transferred to the Union Ministry of Housing and Urban Affairs.

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