The Ashok and 7 other ITDC hotels to be monetised

Under the government’s target of monetising “under-utilized public sector assets”, ‘The Ashok’ 5-star hotel will be leased out to private operators in four years.

Key points

• The Ashok and the Hotel Samrat are among eight India Tourism Development Corporation (ITDC) properties that Finance Minister Nirmala Sitharaman listed in the National Monetisation Pipeline (NMP).
• Under the monetisation plan, ITDC would divest Hotel Ranchi Ashok in Ranchi as well as Hotel Nilachal in Puri.
• Hotel Pondicherry Ashok in Puducherry would be monetised by means of joint leasing.
• O&M (Operation & Maintenance) contract model will be followed for Hotel Jammu Ashok in Jammu and Hotel Kalinga Ashok in Bhubaneswar.
• Anandpur Sahib Hotel will be privatised along with transfer of ownership.
• New Delhi’s Hotel Ashok will be monetised by means of a sub-lease, whereas, Hotel Samrat will be given to private players under O&M agreement.

About Indian Tourism Development Corporation (ITDC)

ITDC is a PSU under the Tourism Ministry. It runs hotels and restaurants at various places for tourists and also provide transport facilities. Present network of ITDC comprises of:

1. Four Ashok Group of Hotels
2. Four Joint Venture Hotels
3. Four catering outlets
4. Seven transport units as a part of travel and tourism infrastructure
5. 14 Duty-Free Shops at Seaports,
6. One sound and light show.

Background

All the 8 hotel assets of ITDC will be considered for monetisation during financial year 2022 to 2025.

The Ashok group of hotels

These are the flagship hotel chain under ITDC, having a brand value developed in last 40-50 years. These hotels been the centre stage for all government events that are organised by various ministries and public sector entities.

Month: Current Affairs - August, 2021