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Centre to exit 3 ITDC hotels, handover stakes to state governments

News Agencies | Updated on: 20 September 2017, 17:20 IST

The Cabinet has approved the transfer of Hotel Jaipur Ashok, Jaipur and Lalitha Mahal Palace, Mysore, which are units of India Tourism Development Corporation Ltd. (ITDC) to Government of Rajasthan and Government of Karnataka respectively, asserted Union Minister Arun Jaitley at the Cabinet meeting on 20 September.

"A few months back, the operated hotels of ITDC were approved to be handed over to the state government for redevelopment, either by themselves, or through partners," said Arun Jaitley, while addressing the media.

The Cabinet has also approved disinvestment of ITDC' 51 percent equity shares in M/s Donyi Polo Ashok Hotel Corporation Ltd., the joint venture company running Hotel Donyi Polo Ashok, Itanagar, in favour of the Government of Arunachal Pradesh.

"The Central Government is withdrawing and the properties are being transferred to the states. Now the states will redevelop it or run it, will be the state's purgative," Arun Jaitley said.

This is as per the disinvestment policy of the Government of India, whereas:

- ITDC hotels, properties to be leases, sub-leased jointly with the states,

- Where states have not agreed to the proposal of the 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 the Government or its entities," said Finance Minister during the Cabinet meeting.

The second issue that the Finance Minister discussed was the rationalisation or merger and modernisation of the presses of the Government of India.

"The Cabinet approved rationalisation, merger and modernisation of seventeen Government of Indian Presses (GIPs), units into five GIPs at Rashtrapati Bhavan, Minto Road and Mayapuri in New Delhi; Nashik Maharashtra and Temple Street, Kolkata," said the Union Minister.

Five Presses will be redeveloped and modernised by monetisation of their surplus land, informed Arun Jaitley.

He also asserted that wherever there are surplus employees, they will redeploy in the Presses only, and made sure that the existing jobs will be protected.

"Land measuring 468 acres of the other merged Presses will be given to Land and Development Office, Ministry of Urban Development," said Jaitley while addressing the media.

He also stated that modernisation of the Presses will enable them to undertake important confidential, urgent and multi-colour printing work of the Central Government Offices all over the country.

"This will be carried out at zero cost to the exchequer and without any retrenchment," Arun Jaitley said at the Cabinet meeting. 


First published: 20 September 2017, 17:20 IST