The government is considering leasing ITDC hotels with management right to private companies as part of its efforts to monetise the properties owned the state-run firm.
The government is considering leasing ITDC hotels with management right to private companies as part of its efforts to monetise the properties owned the state-run firm. According to sources, the government is chalking out a plan under which ITDC hotels that are owned and run by the central government would be let on lease to private companies.
These companies will have the right to decide on management, expansion and new investments. Hotels that are run jointly by the Centre and states can also be given to private entities on lease, sources said. In case of hotels that are built on state land, the right could be transferred to the states for a consideration. The state governments can then decide to sell or to lease to private entities.The decision to lease and transfer management control of hotels assumes importance as the NDA government has been trying for strategic sale of ITDC hotels for two years. If the hotels are given on lease, then the government will earn lease premium till the time private entities run the hotels. The government is targeting Rs 15,000 crore from strategic sale in PSUs and another Rs 46,500 crore by selling minority stake in PSUs.