Lok Sabha Question No. 2147 (UNSTARRED), answered on 2021-08-02
Subject: Role of ITDC in Promotion of Tourism
Ministry: TOURISM
Asked by: Kuldeep Rai Sharma, Manickam Tagore B, Amol Ramsing Kolhe, Sunil Dattatray Tatkare, Subhash Ramrao Bhamre, DNV Senthilkumar. S., Supriya Sadanand Sule, Ratansinh Magansinh Rathod

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA

## UNSTARRED QUESTION NO.2147 ANSWERED ON 02.08.2021

## ROLE OF ITDC IN PROMOTION OF TOURISM

## 2147. SHRI KULDEEP RAI SHARMA:

SHRI MANICKAM TAGORE B.:

DR. AMOL RAMSING KOLHE:

SHRI SUNIL DATTATRAY TATKARE:

DR. SUBHASH RAMRAO BHAMRE:

DR. DNV SENTHILKUMAR. S.:

SHRIMATI SUPRIYA SULE:

SHRI RATANSINH MAGANSINH RATHOD:

Will the Minister of TOURISM be pleased to state:

- (a) the  role  of  India  Tourism  Development  Corporation  (ITDC)  in  the hospitality  industry  and  the  promotion  of  tourism  in  the  country along  with  the  number  of  ITDC  hotels  in  the  country  presently functioning;
- (b) whether  the  ITDC  has  not  been  able  to  achieve  its  objective  for which it was set up and if so, the details thereof and the reasons therefor;
- (c) whether  the  Government  has  taken  note  of  the  huge  losses suffered  by  ITDC  in  recent  years  and  if  so,  the  steps  taken  by Government to streamline the economic condition of these hotels;
- (d) whether the Government has directed ITDC to transfer some of its hotels,  beach  resorts,  travellers  lodges/restaurants  to  the  State Governments or jointly lease them with the State Governments and if so, details thereof and the reasons therefor; and
- (e) the steps taken by Government to improve the profitability of ITDC so as to avoid it from closure?

## ANSWER

(SHRI G. KISHAN REDDY)

MINISTER OF TOURISM

(a): At present, India Tourism Development Corporation Limited (ITDC) is running the following verticals:

Ashok Group of Hotels: ITDC as part of one of its main objectives had been running various hotels, motels, restaurants, canteens, cafeterias etc. for the purpose of boarding, lodging and stay of tourists. A number of units have been handed over to respective State Governments while some were disinvested / divested as per directions of the Government of India. At present the following hotels etc. are being operated by ITDC / Joint Venture Company (JVC):

| S. no.               | Name of Hotel                                           | State / UT          |
|----------------------|---------------------------------------------------------|---------------------|
| 1                    | The Ashok Hotel                                         | New Delhi           |
| 2                    | Samrat Hotel                                            | New Delhi           |
| 3                    | Hotel Kalinga Ashok                                     | Bhubaneswar, Odisha |
| Joint Venture Hotels | Joint Venture Hotels                                    |                     |
| 1                    | The Ashok Beach Resort                                  | Puducherry          |
| 2                    | Hotel Nilachal Ashok (Operations Closed and sub-judice) | Puri, Odisha        |
| Restaurant           | Restaurant                                              |                     |
| 1                    | Taj Restaurant                                          | Agra, Uttar Pradesh |

Ashok Travels and Tours (ATT) Division is providing various travel related services like air ticketing (domestic and international), car rental services and cargo handling.

Ashok Consultancy and Engineering Services (ACES) Division has been preparing DPR's / Feasibility Reports for Promotion / Development of  tourism  infrastructure  in  the  Country.  Further  the  division  also executes various tourism infrastructure projects under Swadesh Darshan,  PRASHAD  and  CFA  Scheme  of  Ministry  of  Tourism  and  State Governments.

Sound  &  Light  Show  (SEL)  Division  of  ITDC  has  a  major  role  of developing Tourism Infrastructure and SEL Projects. The company has been  able  to  assist  Ministry  of  Tourism  and  various  State  Govts.  for preparation  of  Detailed  Project  Reports,  Feasibility  Reports,  Tourism Master Plans etc. in almost every part of the country and has executed prestigious  projects  in  North  East  and  various  other  states.  As  far  as implementation  of  SEL  Shows  is  concerned,  the  organization  is  the oldest in the country and has contributed to give its best SEL shows at Red Fort, Purana Quilla, Cellular Jail, Konark Sun Temple, Ross island, Shilpgram  Deoghar,  Diu  Fort,  Tilyar  lake  Rohtak  etc.  The  Division  at present is implementing shows at Leh Palace, Kargil, Dal Lake, Udaigiri, Sarkis Roza Gujarat, Dhordo Kutch, Pinjore, Brahm Sarovar Kurukshtra etc.

## Ashok Events Division (AED):

- (i) Manages  events,  conferences  and  exhibitions  etc.  both  at national  and  international  level  for  various  Ministries  and Government Bodies.
- (ii) Provides designing and printing solutions (posters, brochures, folders, invite cards etc.).
- (iii)    Manages  Literature  Distribution  Centre,  Palam  on  behalf  of Ministry of Tourism.
- (iv)    AED  is  the  designated agency of the Ministry of Tourism for executing their events etc. in promoting Tourism.

Ashok  Institute  of  Hospitality  &  Tourism  Management  (AIHTM) vertical  of  ITDC,  is  a  skill  imparting  centre  in  the  Hospitality  sector. AIH&TM is conducting various skill development programmes of Ministry of  Tourism,  Government  of  India  (Hunar  Se  Rozgar,  Skill  Testing  and Certification, Entrepreneurship Development Programme, Tourism Awareness  Programme  etc.)  alongwith  skill  certification  and  Diploma Courses such as One Year Diploma in Hospitality Trades in association with  NIOS,  Ministry  of  HRD  and  One  Year  Diploma  in  Hospitality Management  (DHM)  with JMI Central University. AIH&TM  is also conducting 3 years B.Sc. (Hotel and Hospitality Administration) Course in affiliation with NCHMCT-IGNOU and 3 years B.VoC. in Food Production in affiliation with JMI Central University. These courses help in generating skilled manpower in the hospitality trade and thus helps in bridging gap in requirement versus availability of trained manpower.

Ashok International Trade Division (AITD) currently has Duty Free Shops at Seaports, thereby facilitating the International traveller to buy Duty free goods. The division currently has shop at 14 seaport locations.

(b):    ITDC  has  been  able  to  achieve  its  primary  objectives  for  which  it was set  up  and  has  been  able  to  develop  and  promote  tourism  in  the country over a period of time.

(c):  ITDC  has  not  suffered  losses  during  last  5  years  except  in  the financial year 2020-21 due to COVID-19 impact and lock down restrictions. Profitability position of the Company during last five years is as follows:

(In Rs. Lakh)

| Financial Year   | Profit After Tax (PAT)   | Total Comprehensive Income (TCI)   |
|------------------|--------------------------|------------------------------------|
| 2020-21          | -2,720.29                | -2,583.86                          |

| 2019-20   | 2,195.47   | 1,429.90   |
|-----------|------------|------------|
| 2018-19   | 3,957.44   | 4,135.04   |
| 2017-18   | 1,770.72   | 1,322.32   |
| 2016-17   | 1,143.20   | 1,062.33   |

(d): Yes, as per its Disinvestment Policy, the Government of India is in the  process  of  disinvesting  the  hotels  and  properties  of  ITDC  through leasing out or transferring the property to the concerned State Governments / Ministry. 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.

Status of disinvestment is placed at Annexure.

(e): The steps taken to improve the profitability of ITDC, are as follows:

- (i)     Renovation of some rooms in The Ashok Hotel, New Delhi in recent past.
- (ii)    Renovation of 48 rooms, addition of a new swimming Pool for guests  and  a  new  licensed  F&B  outlet  has  been  done  in Samrat Hotel, New Delhi.
- (iii)    Modernization of the products & upgradation of services in all Hotels & Catering Establishments of ITDC.
- (iv)    Tie ups with most of the Online Travel Agents for online room bookings has been done.
- (v) ATT has closed down its non-viable units in various cities and also  intends  to  improve  its  business  of  cargo  segment  by appointing more cargo agents to improve its performance.
- (vi)   AED has been utilized by many Central Ministries, Government departments, Autonomous bodies etc. for executing their events in India and internationally for which Event Management Fee (EMF) is paid to ITDC- Ashok Events.
- (vii)   AITD  has  been  profitable  and  even  as  on  date  when  due  to the  Novel  Corona  Virus  COVID-19  Pandemic,  most  of  the travel  and  tourism  related  business  have  taken  big  hits, ITDC's Duty Free business continues to earn profits for ITDC and Government of India.

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## ANNEXURE

STATEMENT  IN  REPLY  TO  PART  (d)  OF  LOK  SABHA  UNSTARRED QUESTION  NO.2147  ANSWERED  ON  02.08.2021  REGARDING  ROLE  OF ITDC IN PROMOTION OF TOURISM

## Status of Disinvestment

| No. of Hotels handed over                                                                                               | No. of Hotels handed over                                                                                               | :                                                                                                                       | 9                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|
| To State Governments                                                                                                    | 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 Hotel Project of Gulmarg Ashok, Gulmarg, UT J&K                                                              | of                                                                                                                      |                                                                                                                         |
| (vi)                                                                                                                    | Hotel Donyi Polo Ashok, Itanagar, Arunachal Pradesh                                                                     |                                                                                                                         |                                                                                                                         |
| (vii)                                                                                                                   | Hotel Lalitha Mahal Palace, Mysore, Karnataka                                                                           |                                                                                                                         |                                                                                                                         |
| (viii)                                                                                                                  | Hotel Patliputra Ashok, Patna, Bihar                                                                                    |                                                                                                                         |                                                                                                                         |
| To Ministry of Urban Development (now Housing & Urban Affairs)                                                          | To Ministry of Urban Development (now Housing & Urban Affairs)                                                          | To Ministry of Urban Development (now Housing & Urban Affairs)                                                          | To Ministry of Urban Development (now Housing & Urban Affairs)                                                          |
| (ix)                                                                                                                    | Hotel Janpath, New Delhi, Delhi                                                                                         |                                                                                                                         |                                                                                                                         |
| No. of                                                                                                                  | Hotels to be handed over to the State Governments                                                                       | :                                                                                                                       | 2                                                                                                                       |
| (i)                                                                                                                     | Incomplete Hotel Project of Anandpur Sahib, Punjab                                                                      |                                                                                                                         |                                                                                                                         |
| (ii)                                                                                                                    | Hotel Jammu Ashok, Jammu, UT of J&K                                                                                     |                                                                                                                         |                                                                                                                         |
| No. of                                                                                                                  | Hotels for Joint Leasing / O&M contract                                                                                 | :                                                                                                                       | 2                                                                                                                       |
| (i)                                                                                                                     | Hotel Kalinga Ashok, Bhubaneswar, Odisha                                                                                |                                                                                                                         |                                                                                                                         |
| (ii)                                                                                                                    | Hotel Pondicherry Ashok, UT of Puducherry                                                                               |                                                                                                                         |                                                                                                                         |
| No. of Hotels for transferring equity stake                                                                             | No. of Hotels for transferring equity stake                                                                             | :                                                                                                                       | 1                                                                                                                       |
| (i)                                                                                                                     | Hotel Ranchi Ashok, Ranchi, Jharkhand                                                                                   |                                                                                                                         |                                                                                                                         |
| No. of Hotels where disinvestment proceedings have                                                                      | No. of Hotels where disinvestment proceedings have                                                                      | :                                                                                                                       | 1                                                                                                                       |
| been stayed due to order of Hon'ble Supreme Court:                                                                      | been stayed due to order of Hon'ble Supreme Court:                                                                      |                                                                                                                         |                                                                                                                         |
| (i)                                                                                                                     | Hotel Nilachal Ashok, Puri, Odisha                                                                                      |                                                                                                                         |                                                                                                                         |
| No. of Hotel for which Consultant has been appointed for study and advise for optimizationof revenue / lease / O&M etc. | No. of Hotel for which Consultant has been appointed for study and advise for optimizationof revenue / lease / O&M etc. | No. of Hotel for which Consultant has been appointed for study and advise for optimizationof revenue / lease / O&M etc. | No. of Hotel for which Consultant has been appointed for study and advise for optimizationof revenue / lease / O&M etc. |
| (i)                                                                                                                     | Hotel The Ashok, New Delhi                                                                                              | :                                                                                                                       | 1                                                                                                                       |

9

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1

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Detailed status of hotels etc. undergoing the disinvestment process, is as follows:

|   S. No. | Name of property                             | Status                                                                                                                                                                                                                                                                                                                                                                                                                   |
|----------|----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Hotel Pondicherry Ashok, Puducherry (UT)     | IMG decided to give the existing hotel along with 8 Acres of land for development on O&M basis for 50 years and monetization of remaining land of Hotel Pondicherry Ashok through DIPAM.                                                                                                                                                                                                                                 |
|        2 | Incomplete Project of Anandpur Sahib, Punjab | In IMG meeting, representative of Govt. of Punjab proposed for sharing depreciated cost of building and actual cost of other expenditure being incurred by the company. Punjab Govt. to send the proposal for the same.                                                                                                                                                                                                  |
|        3 | Hotel Kalinga Ashok, Bhubaneswar, Odisha     | RFP floated thrice but remained unsuccessful. IMG decided to retender with revised selection criteria of Minimum Guarantee Option.                                                                                                                                                                                                                                                                                       |
|        4 | Hotel Ranchi Ashok, Ranchi, Jharkhand        | Operations of the hotel are closed. IMG approved valuation of RABHCL on 'as is where is basis' for the purpose of transfer of 51% equity stake of ITDC in RABHCL to Govt. of Jharkhand. Consideration against the equity shares and dues of ITDC received, however the loan recently given by ITDC for VRS and other statutory dues and outstanding dues of employees of RABHCL, are to be paid by Jharkhand Government. |
|        5 | Hotel Nilachal Ashok, Puri, Odisha           | Matter is sub-judice in the Hon'ble Supreme Court of India.                                                                                                                                                                                                                                                                                                                                                              |
|        6 | Hotel Ashok, New Delhi                       | Transaction Advisor (TA) appointed by DIPAM,MoF, GoI for studying lease terms & conditions of land, O&M / sub-leasing of Hotel Ashok and utilization of vacant land in Hotel Ashok-Hotel Samrat Complex, New Delhi. TA submitted the report to DIPAM which was discussed in the IMG held by DIPAM. Core Group of Disinvestment (CGD) approved the recommendations of IMG meeting.                                        |
|        7 | Hotel Jammu Ashok, UT of J&K                 | Govt. of J&K informed about non-renewal of lease and resumption of land by the J&K Govt. Pursuant to the Board decision, operation of hotel closed and employees were offered VRS. Those who did not opt for VRS, were adjusted in other units of ITDC. For taking possession of the hotel by J&K Government, payment of compensation in accordance with the lease deed applicable.                                      |

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