Business & Economy

Cabinet nod for transfer of Hotel Jaipur Ashok, Lalitha Mahal Palace Hotel to State Governments

NetIndian News Network

New Delhi, September 20, 2017

The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for the transfer of Hotel Jaipur Ashok, Jaipur and Lalitha Mahal Palace Hotel, Mysore, units of India Tourism Development Corporation Ltd (ITDC), to the Government of Rajasthan and the Government of Karnataka, respectively, and disinvestment of ITDC's shares in Donyi Polo Ashok Hotel Corporation, Itanagar.
An official press release said that, as per the disinvestment policy of the Government of India, it had been decided to lease/sub-lease the ITDC hotels/ properties jointly with the States and where States have not agreed to the proposal of leasing/sub-leasing, the properties may be returned back to the States at their officially valued price. 
The policy has been formulated keeping in view that running and managing hotels on professional lines is not the job of Government or its entities, it said.
In pursuance of this policy, the Ministry of Tourism has to date transferred the properties/units of Hotel Lake View Ashok, Bhopal, Hotel Brahmaputra Ashok, Guwahati and Hotel Bharatpur Ashok, Bharatpur to the concerned State Governments. In addition, ‘in principle’ approval for transfer of Hotel Janpath, New Delhi to the Ministry of Urban Development, Government of India has also been accorded by the CCEA.
The release said the transfer of the properties of Hotel Jaipur Ashok and Hotel Lalitha Mahal Palace was in continuation of the policy.
As far as Donyi Polo Ashok Hotel Corporation, the joint venture company running Hotel Donyi Polo Ashok, Itanagar, is concerned, the Cabinet decided that ITDC would disinvest its 51% equity in favour of the Government of Arunachal Pradesh, the release added.