Former NITI Aayog CEO Amitabh Kant on Monday signalled the Centre's intent to exit the non-core businesses, saying the goverment has no business running hotels as he cited Delhi's iconic Ashoka Hotel as an example.
"Let's start with the privatisation of Ashoka hotel in the heart of Delhi. The government of India has no business running a hotel..." said Kant while speaking at Network18's Reforms Reloaded event in New Delhi.
The government has been moving ahead with the privatisation of Delhi’s iconic Ashok Hotel under the National Monetisation Pipeline for the past few years. It plans to lease the five-star property to a private player for 60 years through a public-private partnership. The hotel will be run under an operate-maintain-develop model to attract investment for modernisation and better returns. The timeline for the deal is still being finalised, and the terms may include a longer lease and extra land for development.
Currently, the Centre owns 87.03 per cent of ITDC while Tata Group’s Indian Hotels Company (IHCL) holds a 7.86 per cent stake.
The long-pending redevelopment of the Ashok Hotel is part of the ₹6 trillion National Monetisation Pipeline running through FY25. Under the plan, bidders could be offered the hotel and adjoining land parcels on a 60–99 year lease under an operation, management and development model.
Built on 11.42 acres, the Ashok has 550 rooms, including 160 suites, and is located just a few hundred metres from the Prime Minister’s residence and several embassies. The winning bidder will be required to refurbish the property to the standards of leading global hotels.
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