Question : Disinvestment of ITDC Hotels

(a) whether the Government has been able to achieve the objective for which India Tourism Development Corporation (ITDC) was set up and if so, the details thereof along with the details of hotels, beach resorts and restaurants under ITDC, location and State/UT-wise;
(b) whether most of the ITDC hotels, resorts, lodges are running in huge losses;
(c) if so, the quantum of losses during each of the last three years and the reasons therefor;
(d) whether the Government is disinvesting ITDC through leasing out or transferring the property to the concerned State Government/Ministry and if so, the details thereof along with the amounts received by ITDC on account of hotels/properties disinvested; and
(e) the other steps taken by the Government to develop ITDC as a profitable entity?

MINISTER OF STATE FOR TOURISM (INDEPENDENT CHARGE)
(SHRI PRAHLAD SINGH PATEL)

(a): ITDC through various measures has made constant endeavours to contribute to the development of tourism in the country. Details of Hotels/Restaurants being presently run by ITDC are as follows:

Hotels being run by ITDC:

(i) The Ashok Hotel, New Delhi
(ii) The Samrat Hotel, New Delhi
(iii) Hotel Jammu Ashok, Jammu, Jammu & Kashmir
(iv) Hotel Kalinga Ashok, Bhubaneshwar, Odisha

Joint Venture Hotels of ITDC:

(i) The Ashok Beach Resort, Puducherry
(ii) Hotel Ranchi Ashok, Ranchi, Jharkhand (presently operations are closed)
(iii) Hotel Nilachal Ashok, Puri, Odisha (operations closed)

Restaurant:

(i) Taj Restaurant, Agra, Uttar Pradesh

(b) and (c): The loss making hotel units of ITDC are Hotel Jammu Ashok, Jammu and Hotel Kalinga Ashok, Bhubneshwar and quantum of losses during last three years is as follows:

(Rs. in lakh)
<pre>
Name of Hotel 2016-17 2017-18 2018-19
Hotel Jammu Ashok -170.69 -283.21 -280.50
Hotel Kalinga Ashok -105.17 -280.65 -122.04
</pre>

Some of the reasons for incurring losses include, inter-alia, the wage structure of ITDC employees which are higher than industry norms, non-refurbishment and renovation due to ongoing disinvestment process and competition from other modern hotels.

(d): As per the Disinvestment Policy of the Government of India, hotels/properties of ITDC are being disinvested / divested. Details of properties disinvested to date along with the amount received by ITDC are at Annexure.

(e): Steps are being taken with the objective of strengthening other verticals of ITDC like Tour & Travels, Hospitality, Education and Skill Development, Event Management, Tourism related infrastructure projects, mounting of Sound and Light shows, etc.

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