Govt plans to monetise New Delhi’s Ashok hotel run by ITDC
Real Estate

Govt plans to monetise New Delhi’s Ashok hotel run by ITDC

The centre is planning to monetise 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 asset monetisation plan by January.

The plan may be undertaken by the Cabinet by early next month, a government official told the media, adding that the Centre anticipates the hotel's monetisation to be done by December next year.

An empowered group may be installed by the Cabinet to operate the process, the official told the media, adding that three models have been presented. One is to lease the hotel on a standalone basis with the land parcel kept out of the process.

The Ashok, situated in the diplomatic enclave of Chanakyapuri in Lutyens’ Delhi, was opened in 1956. The sprawling property with 550 guest rooms is held by ITDC, in which the government holds an 87.03% stake.

There have been discussions over the past couple of years about the government aiming to monetise the hotel. Several other ITDC hotels, comprising Jammu Ashok in Jammu, Janpath in Delhi and Kalinga Ashok in Bhubaneswar, have been closed in recent years due to increasing losses.

A report issued by the Department of Investment and Public Asset Management (DIPAM) in 2020 had stated that the government could raise approximately Rs 7,500 crore by selling its hotel properties.

The asset monetisation plan is part of the disinvestment drive being spearheaded by the Centre. The finance ministry has set an ambitious goal of raising Rs 1.75 lakh crore via disinvestments in FY22. It is approximately five times the Rs 32,825 crore raised via divestments in the earlier fiscal.

Image Source

The centre is planning to monetise 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 asset monetisation plan by January. The plan may be undertaken by the Cabinet by early next month, a government official told the media, adding that the Centre anticipates the hotel's monetisation to be done by December next year. An empowered group may be installed by the Cabinet to operate the process, the official told the media, adding that three models have been presented. One is to lease the hotel on a standalone basis with the land parcel kept out of the process. The Ashok, situated in the diplomatic enclave of Chanakyapuri in Lutyens’ Delhi, was opened in 1956. The sprawling property with 550 guest rooms is held by ITDC, in which the government holds an 87.03% stake. There have been discussions over the past couple of years about the government aiming to monetise the hotel. Several other ITDC hotels, comprising Jammu Ashok in Jammu, Janpath in Delhi and Kalinga Ashok in Bhubaneswar, have been closed in recent years due to increasing losses. A report issued by the Department of Investment and Public Asset Management (DIPAM) in 2020 had stated that the government could raise approximately Rs 7,500 crore by selling its hotel properties. The asset monetisation plan is part of the disinvestment drive being spearheaded by the Centre. The finance ministry has set an ambitious goal of raising Rs 1.75 lakh crore via disinvestments in FY22. It is approximately five times the Rs 32,825 crore raised via divestments in the earlier fiscal. Image Source

Next Story
Infrastructure Energy

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Next Story
Infrastructure Urban

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Next Story
Infrastructure Energy

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?