ITDC’s The Ashok hotel might be a step closer to disinvestment; know more

Disinvestment of India Tourism Development Corporation (ITDC)’s iconic hotel The Ashok in the national capital will soon be taken up for discussions by Public Private Partnership Appraisal Committee (PPPAC), said government sources. 

PPPAC will be monitored by Secretary, Department of Economic Affairs and Centre will float a Cabinet note for long lease of The Ashok post PPPAC approval.

Centre is likely to license out The Ashok through the operate-maintain-develop (OMD) mode for a period of 60 years.

The hotel was a pet project of India’s first PM Jawaharlal Nehru and built in time for the country to host the UNESCO meet in 1956.

The move will not only facilitate development of the under-utilised property in the heart of Lutyens’ Delhi through private investments but also enable both the investors and the government — the owner of the property — to derive maximum commercial value out of the asset.

Last year, reports suggested government has fixed an indicative value for The Ashok hotel under national monetisation programme at Rs 7,409 crore.

Currently, the Centre owns 87.03% in ITDC, Tata Group’s Indian Hotels Company (IHCL) holds 7.87% stake, while 5.1% is held by others, including retail investors.

The hotel sits on a 25-acre land parcel and has over 550 rooms and is run by the public sector ITDC.

Hotel Samrat, which is located near The Ashok, is likely to continue to be run by ITDC, due to its proximity to the prime minister’s residence, a sensitive location that demands high security.

Over the past few years, ITDC has shut down several hotels including the Jammu Ashok and Hotel Kalinga Ashok at Bhubaneswar.