The Centre has identified five ITDC-run hotels, including Hotel Janpath in New Delhi for privatisation as part of its plan to disinvest eight such loss-making properties.
“Tourism Secretary Vinod Zutshi held a review meeting on February 8, 2016, in which it was discussed that five properties will now be taken up for disinvestment,” the India Tourism Development Corporation (ITDC) said in a regulatory filing on Friday.
Besides Hotel Janpath, other properties in which the stake will be offloaded are — Hotel Patliputra Ashok; Hotel Bharatpur Ashok and property at Kosi; Hotel Donyi Polo Ashok and Hotel Pondicherry Ashok.
Hotel Janpath and Hotel Patliputra Ashok are ITDC properties while Hotel Bharatpur Ashok and the property at Kosi are owned by the Tourism Ministry and managed by the corporation. Hotel Donyi Polo Ashok and Hotel Pondicherry Ashok are properties of ITDC’s joint venture subsidiary companies.
Currently ITDC, a public sector unit under the Tourism Ministry, runs 16 hotels in the country, including three in Delhi and the rest in Jammu, Ranchi, Bhubaneswar, Puri, Patna, Bhopal, Bharatpur, Jaipur, Guwahati, Pondicherry, Mysore and Itanagar.
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During the National Democratic Alliance’s first stint between 1999 and 2004, the then Atal Bihari Vajpayee government had divested 18 ITDC hotels bringing down the number of state-run hotels from 34 to 16. Besides, a network of hotels, ITDC also runs 11 transport units, nine duty-free shops at airports and seaports.
On Friday, the stock of ITDC closed down 2.40% or Rs 3.70 at Rs 150.40 on the BSE.