Lok Sabha Question No. 1369 (UNSTARRED), answered on 2019-02-11
Subject: Disinvestment of ITDC Hotels/ Properties
Ministry: TOURISM
Asked by: CHINTAMANI MALVIYA

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA UNSTARRED QUESTION NO.†1369 ANSWERED ON 11.02.2019

## DISINVESTMENT OF ITDC HOTELS/PROPERTIES

†1369. PROF. CHINTAMANI MALVIYA:

Will the Minister of TOURISM be pleased to state:

- (a) whether the Government has sanctioned/approved the process of  disinvestment  of  hotels/properties  of  the  India  Tourism Development Corporation Ltd. (ITDC) in the country;
- (b)
- if so, the details thereof and the reasons therefor;
- the details and the number of hotels/properties proposed to be
- (c) disinvested, State/UT-wise;
- (d) whether  funds  received  from  disinvestment  are  likely  to  be utilised for promoting tourism industry in the concerned States and if so, the details thereof;
- (e) the details and the number of hotels/properties of ITDC Ltd. in Madhya Pradesh; and
- (f) whether the Government has formulated any special scheme through which the hotels/properties of ITDC Ltd. are likely to be disinvested?

## ANSWER

MINISTER OF STATE FOR TOURISM (INDEPENDENT CHARGE) (SHRI K.J. ALPHONS)

(a) and (b): As per its Disinvestment Policy, the Government is disinvesting the hotels and properties of ITDC through leasing out or transferring the property to the concerned State Governments/Ministry (except Ashok Hotel and Samrat Hotel, New Delhi). The Policy has been formulated keeping in view that running and  managing  hotels  on  professional  lines  is  not  the  job  of  the Government or its entities.

(c): Details are at Annexure . (d): Disinvestment proceeds from the sale of ITDC's equity stake in the Joint Venture Companies and from transfer of ITDC's properties to  the  State  Governments  have  come  to  ITDC  and  the  same  is shown as other income (income from disinvestment). ITDC is inter alia  engaged  in  the  development  of  tourism  infrastructure  apart from hotels and other tourism related activities. (e): There was one Joint Venture named 'Hotel Lake View Ashok' in  Bhopal.  ITDC  transferred  its  equity  stake  to  the  Government  of Madhya  Pradesh  in  June,  2017  and  accordingly  Hotel  Lake  View Ashok was transferred to the Government of Madhya Pradesh. Further, there is one plot measuring (6.77 Bighas) or 1,52,327 sq. ft. at Gwalior purchased by ITDC on 21.02.2003. (f): The  disinvestment  is  through  transfer/joint  leasing/operation and maintenance of property through third parties. Where the State Government  is  not  willing  for  joint  leasing,  the  hotel/property  is handed over to the State Government at a negotiated consideration/valuation  approved  by  the  Inter  Ministerial  Group (IMG) constituted by the Ministry of Tourism.

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## ANNEXURE

STATEMENT IN  REPLY  TO  PART  (c)  OF  LOK  SABHA  UNSTARRED QUESTION NO.†1369 ANSWERED ON 11.02.2019 REGARDING DISINVESTMENT OF ITDC HOTELS/PROPERTIES.

## Status of Disinvestment

No. of Hotels handed over : 8

## To State Governments

- (i) Hotel Lake View Ashok, Bhopal, Madhya Pradesh
- (ii) Hotel Brahmaputra Ashok, Guwahati, Assam
- (iii) Hotel Bharatpur Ashok, Bharatpur, Rajasthan
- (iv) Hotel Jaipur Ashok,  Jaipur, Rajasthan
- (v) Incomplete Project of Gulmarg Ashok, Gulmarg, J&K
- (vi) Hotel Donyi Polo Ashok, Itanagar, Arunachal Pradesh
- (vii) Hotel Lalitha Mahal Palace, Mysore, Karnataka

## To Ministry of Urban Development

(viii) Hotel Janpath, New Delhi

No. of Hotels decided to be handed over to the State Govt. : 2

- (i) Hotel Patliputra Ashok, Patna, Bihar (MoU signed)
- (ii) Incomplete Project of Anandpur Sahib, Punjab

Hotels for Joint Leasing

:

1

- (i) Hotel Pondicherry Ashok, Puducherry (UT)

Hotels for O & M Contract : 1

- (i)      Hotel Kalinga Ashok, Bhubaneswar, Odisha

Hotels for transferring equity stake : 1

- (i) Hotel Ranchi Ashok, Ranchi, Jharkhand

No. of Hotels where disinvestment proceedings have been stayed due to order of Hon'ble Supreme Court : 1

- (i) Hotel Nilachal Ashok, Puri, Odisha

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