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

As part of the disinvestment exercise, the Centre today decided to exit three ITDC hotels including Jaipur Ashok and handover them to the state governments concerned.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the transfer of India Tourism Development Corporation Ltd (ITDC) hotels Jaipur Ashok and Lalitha Mahal Palace Mysore to the governments of Rajasthan and Karnataka.

It also cleared disinvestment of ITDC's 51 per cent equity in Donyi Polo Ashok, Itanagar, in favour of Arunachal Pradesh.

Briefing the media after the Cabinet meeting, Finance Minister Arun Jaitley said that as per valuations, the Jaipur property would fetch the Centre Rs 14 crore, Mysore Rs 7.45 crore and Itanagar Rs 3.89 crore.

This is as per disinvestment policy of the Government of India wherein ITDC Hotels and properties are to be leased or sub-leased jointly with states, he said.

The policy has been formulated in line with the view that running and managing hotels is not the job of the government or its entities.

The Ministry of Tourism has to date transferred the properties or units of Hotel Lake View Ashok, Bhopal; Hotel Brahmaputra Ashok, Guwahati and Hotel Bharatpur Ashok, Bharatpur to the state governments concerned.

In addition, 'in-principle' approval for transfer of Hotel Janpath, New Delhi, to Ministry of Urban Development, has also been accorded by the CCEA.

Shares of ITDC closed at Rs 577.45, a surge of 16.43 per cent from the previous close.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)