The government today gave approval for the disinvestment of hotels and properties of India Tourism Development Corporation (ITDC) at three locations -- Bhopal, Guwahati and Bharatpur.
The government today gave approval for the disinvestment of hotels and properties of India Tourism Development Corporation (ITDC) at three locations -- Bhopal, Guwahati and Bharatpur.
The decision was taken at the meeting of Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
The decision on disinvestment has been made keeping in view that running and managing hotels on professional lines is not the work of the government or its entities, an official release said.
"As part of the disinvestment policy, it has been decided to lease/sub-lease the hotels/properties jointly with the concerned states or return the properties to the states, after fair valuation," it added.
Briefing reporters on the CCEA decision, Finance Minister Arun Jaitley said the states would then have the option to upgrade and operate the hotels by involving the private sector or to utilise the properties as per their requirements.
In the first stage of the disinvestment process, ITDC will exit from Hotel Lake View Ashok, Bhopal; Hotel Brahmaputra Ashok, Guwahati; and Hotel Bharatpur Ashok, Bharatpur.
In all three cases, the hotels/properties are being given back to the states concerned.
In the case of Bhopal and Guwahati, ITDC is divesting its share of 51 per cent in the joint venture company formed for operation of the hotels. ITDC is managing the Bharatpur hotel and will return the property to the state government.
Jaitley further said the Assam government may develop the hotel into a guest house as there are several private hotels in the city.
Shares of ITDC closed at Rs 690.10 apiece on BSE, up 2.4 per cent.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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