After almost over 13 years, the Centre has taken steps to revive state-owned India Tourism Development Corporation (ITDC).
The Tourism Ministry has invited applications from transaction advisers to transfer the government’s holding in three properties — Hotel Pondicherry Ashok, Hotel Patliputra Ashok in Patna and Hotel Donyi Polo in Itanagar — to the respective State governments.
“With a view to transfer the property, the authority has decided to appoint transaction advisors to determine the feasibility and prepare the financial model for the project. If found viable, the property may be transferred to the State,” said the tenders.
They added that applicants would be expected to submit a technical as well as a financial bid.
Officials said the proceeds will be partly ploughed back into ITDC while the remaining will go to the Centre.
Joint ventures All the three hotels were set up along with the respective State governments.
Hotel Donyi Polo and Hotel Pondicherry Ashok are joint ventures in which ITDC holds 51 per cent equity, with the respective State governments holding the balance stake.
For Hotel Patliputra Ashok, the Bihar government had allotted land under a 99-year lease to the Tourism Ministry.
In 2002-03, the Centre had sold stakes between 89.97 per cent and 100 per cent in 10 ITDC hotels — including Hotel Airport Ashok in Kolkata and Hotel Indraprastha in New Delhi — to private players, raising ₹273 crore.
ITDC runs 16 hotels including Ashok and Samrat Hotels in New Delhi.
However, about 11 of its units are loss-making, although Hotel Patliputra Ashok did make some profit last fiscal.
To improve the financial health of ITDC, the Centre plans to sell 14 of its hotels.
Lease plan On Wednesday, Tourism Minister Mahesh Sharma also informed the Rajya Sabha that four other properties would be transferred to State governments: Hotel Lalitha Mahal Palace (Mysore), Hotel Jaipur Ashok, Hotel Lake View Ashok (Bhopal) and Hotel Brahmaputra Ashok (Guwahati).
The Centre has also decided to lease out or sell Hotel Kalinga Ashok (Bhubaneswar), he added.
On Wednesday, ITDC’s scrip gained 0.22 per cent on the BSE to end at ₹223.7.