Union Cabinet on Wednesday decided to disinvest three ITDC hotels and hand over to State Governments. ITDC's hotels in Rajasthan, Karnataka and Arunachal Pradesh are the hotels to be handed over to the respective State Governments.
"The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi has given its approval to the transfer of Hotel Jaipur Ashok, Jaipur and lalitha Mahal Palace Hotel, Mysore, units of India Tourism Development Corporation ltd (ITDC) to Government of Rajasthan and Government of Karnataka, respectively and disinvestment of ITDCs shares in M/s Donyi Polo Ashok Hotel Corporation in Itanagar," said the Government statement.
Briefing the media after the Cabinet meeting, Finance Minister Arun Jaitley said that as per valuation the Jaipur property would fetch the Centre Rs 14 crore, Mysore Rs 7.45 crore and Itanagar Rs 3.89 crore. This is as per disinvestment policy of the Government of India wherein ITDC Hotels and properties are to be leased or sub-leased jointly with states, he said. The policy has been formulated in line with the view that running and managing hotels is not the job of the government or its entities., said the statement.