Construction Industry News
The center plans to monetize The Ashok, a strategically located five-star hotel in New Delhi, operated by the India Tourism Development Corporation (ITDC).
The cabinet is likely to approve the revenue-generating plan in January.
The plan could be implemented by the cabinet early next month, a government official told media, adding that the Center expects revenues from the hotel to be realized by December next year.
An authorized group could be installed by the cabinet to lead the process, the official told media, adding that three models have been presented. One is to lease the hotel on a stand-alone basis, keeping the lot out of the process.
Located in the diplomatic enclave of Chanakyapuri in Lutyens' Delhi, the Ashok opened in 1956. The sprawling 550-room property is owned by ITDC, in which the government has an 87.03% stake.
There have been discussions in recent years about the government wanting to monetize the hotel. Several other ITDC hotels, including Jammu Ashok in Jammu, Janpath in Delhi and Kalinga Ashok in Bhubaneswar, have been closed in recent years due to mounting losses.
A report issued by the Department of Investment and Public Asset Management (DIPAM) in 2020 had stated that the government could raise about Rs 7,500 crore by selling its hotel properties.
The asset monetization plan is part of the divestment drive spearheaded by the Center. The Ministry of Finance has set an ambitious target to raise Rs 1.75 lakh crore through divestments in FY22. It is about five times the Rs 32,825 crore raised through divestments in the earlier fiscal year.
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