Narendra Modi Govt has BIG plans for ITDC’s Ashok Hotel; aims to garner Rs 7000 cr through leasing, land bank monetisation

The central government is mulling to lease one of its most valuable hotels - Hotel Ashok. Built in 1966 and situated in Delhi, for 60 years, the hotel is operated by Indian Tourism Development Corporation Ltd (ITDC), a government of India Undertaking. Zee Business' Chetan Bhutani has this BIG Exclusive report on this.  

Bhutani said that the Narendra Modi Government aims to raise around Rs 7000 crore by leasing this hotel for 60 years. While speaking to Zee Business Managing Editor Anil Singhvi, Bhutani said that the government plans to earn Rs 5,000 crore by leasing Hotel Ashok for 60 years. It would also raise around Rs 2,000 crore by monetising the land assets. 

Both, hotel and the land assets in the surrounding of Ashok fall under the aegis of ITDC. The divestment plan is almost double the market cap of ITDC at around Rs 3200 crore, Bhutani said citing his top sources.   

The process of disinvestment has been fast-tracked by the Government, he said adding that the proposal on this was approved by a core group of secretaries on disinvestment on March 15. 

Bhutani further said that the central government will soon take this to the Cabinet Committee of Economic Affairs (CCEA) once the parliament sessions come close to the end.  

Citing his sources, Bhutani said that the government is expected to invite bids on this by April-end. 

The hotel has as many as 550 rooms and 162 suites, he said. Moreover, the government is also focusing to improve the operational efficiency of the Ashok hotel, he further said. 

ITDC runs many hotels in the country and Ashok is the biggest of them, Zee Business Managing Editor said, commenting on the development. He also called this a big development for ITDC. 

Bhutani said that a formal proposal will go to the Union Cabinet as the CCEA has to approve of this. Thereafter, the process of bidding will be taken up by the Department of Investment and Public Asset Management (DIPAM).