Lok Sabha Question No. 1235 (UNSTARRED), answered on 2020-02-10
Subject: Disinvestment of ITDC Hotels
Ministry: TOURISM
Asked by: Kuldeep Rai Sharma, Shriniwas Dadasaheb Patil, Amol Ramsing Kolhe, Supriya Sadanand Sule, Gautham Sigamani Pon

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA UNSTARRED QUESTION NO.1235 ANSWERED ON 10.02.2020

## DISINVESTMENT OF ITDC HOTELS

## 1235. SHRI KULDEEP RAI SHARMA:

SHRI SHRINIWAS PATIL: DR. AMOL RAMSING KOLHE: SHRIMATI SUPRIYA SULE:

SHRI GAUTAM SIGAMAANI PON:

Will the Minister of TOURISM be pleased to state:

- (a) whether the Government has been able to achieve the objective for which India  Tourism  Development Corporation  (ITDC)  was  set  up and if so, the details thereof along with the details of hotels, beach resorts and restaurants under ITDC, location and State/UT-wise;
- (b) whether  most  of  the  ITDC  hotels,  resorts,  lodges  are  running  in huge losses;
- (c) if so, the quantum of losses during each of the last three years and the reasons therefor;
- (d) whether the Government is disinvesting ITDC through leasing out or transferring the property to the concerned State Government/Ministry  and  if  so,  the  details  thereof  along  with  the amounts received by ITDC on account of hotels/properties disinvested; and
- (e) the  other  steps  taken  by  the  Government  to  develop  ITDC  as  a profitable entity?

## ANSWER

MINISTER OF STATE FOR TOURISM (INDEPENDENT CHARGE) (SHRI PRAHLAD SINGH PATEL)

(a): ITDC through various measures has made constant endeavours to contribute  to  the  development  of  tourism  in  the  country.  Details  of Hotels/Restaurants being presently run by ITDC are as follows:

Hotels being run by ITDC:

- (i)
- The Ashok Hotel, New Delhi
- (ii) The Samrat Hotel, New Delhi
- (iii) Hotel Jammu Ashok, Jammu, Jammu & Kashmir
- (iv) Hotel Kalinga Ashok, Bhubaneshwar, Odisha

## Joint Venture Hotels of ITDC:

- (i) The Ashok Beach Resort, Puducherry
- (ii) Hotel Ranchi Ashok, Ranchi, Jharkhand (presently operations are closed)
- (iii) Hotel Nilachal Ashok, Puri, Odisha (operations closed)

## Restaurant:

- (i) Taj Restaurant, Agra, Uttar Pradesh

(b) and (c): The  loss  making  hotel  units  of  ITDC  are  Hotel  Jammu Ashok, Jammu and Hotel Kalinga Ashok, Bhubneshwar and quantum of losses during last three years is as follows:

(Rs. in lakh)

| Name of Hotel       |   2016-17 |   2017-18 |   2018-19 |
|---------------------|-----------|-----------|-----------|
| Hotel Jammu Ashok   |   -170.69 |   -283.21 |   -280.5  |
| Hotel Kalinga Ashok |   -105.17 |   -280.65 |   -122.04 |

Some  of  the  reasons  for  incurring  losses  include,  inter-alia,  the wage structure of ITDC employees which are higher than industry norms, non-refurbishment and renovation due to ongoing disinvestment process and competition from other modern hotels.

(d):  As  per  the  Disinvestment  Policy  of  the  Government  of  India, hotels/properties  of  ITDC  are  being  disinvested  /  divested.  Details  of properties disinvested to date along with the amount received by ITDC are at Annexure.

(e):   Steps are being taken with the objective of   strengthening other verticals  of  ITDC  like  Tour  &  Travels,  Hospitality,  Education  and  Skill Development, Event Management, Tourism related infrastructure projects, mounting of Sound and Light shows, etc.

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ANNEXURE

STATEMENT  IN  REPLY  TO  PART  (d)  OF  LOK  SABHA  UNSTARRED QUESTION NO.1235 ANSWERED ON 10.02.2020 REGARDING DISINVESTMENT OF ITDC HOTELS.

## DETAILS OF ITDC HOTELS DISINVESTED TO DATE WITH AMOUNT RECEIVED BY ITDC

|   S. No | Name of the Hotel/Property                         | Disinvestment undertaken                                  | Amount received by ITDC   |
|---------|----------------------------------------------------|-----------------------------------------------------------|---------------------------|
|       1 | Hotel Lake View Ashok, Bhopal                      | Transfer to State Govt. of Madhya Pradesh                 | Rs. 12.59 crore           |
|       2 | Hotel Brahmaputra Ashok, Guwahati                  | Transfer to State Govt. of Assam                          | Rs. 2.14 crore            |
|       3 | Hotel Bharatpur Ashok, Bharatpur                   | Transfer to State Govt. of Rajasthan                      | Nil                       |
|       4 | Hotel Janpath, New Delhi                           | Transfer to Ministry of Urban Development, Govt. of India | Nil amount to date        |
|       5 | Incomplete Project of Hotel Gulmarg Ashok, Gulmarg | Transfer to Govt. of Jammu & Kashmir                      | Nil                       |
|       6 | Hotel Jaipur Ashok, Jaipur                         | Transfer to State Govt. of Rajasthan                      | Rs. 14 crore              |
|       7 | Hotel Donyi Polo Ashok, Itanagar                   | Transfer to State Govt. of Arunachal Pradesh              | Rs. 1.98 crore            |
|       8 | Lalitha Mahal Palace, Mysore                       | Transfer to State Govt. of Karnataka                      | Rs. 7.45 crore            |
|       9 | Hotel Patliputra Ashok, Patna                      | Transfer to State Govt. of Bihar                          | Rs. 13.005 crore          |

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