Cabinet approves disinvestment of three ITDC hotels

New Delhi: The central government on Wednesday approved the disinvestment of three hotels owned by the India Tourism Development Corporation (ITDC).

The decision to initiate the disinvestment process to hive-off hotels and properties owned by ITDC was taken by the Cabinet Committee on Economic Affairs (CCEA) at a meeting chaired by Prime Minister Narendra Modi.

According to the CCEA, during the first stage of the hive-off process three hotels -- Hotel Lake View Ashok, Bhopal, Hotel Brahmaputra Ashok, Guwahati and Hotel Bharatpur Ashok, Bharatpur -- are being given back to the concerned state governments.

"As part of the disinvestment policy, it has been decided to lease, sub-lease the hotels, properties jointly with the concerned states or return the properties to the states, after fair valuation," the CCEA said in a statement.

"In the case of Bhopal and Guwahati, ITDC is divesting its share of 51 per cent in the joint venture company formed for operation of the hotels whereas in the case of Bharatpur, the unit which was only managed by ITDC is being returned to the state government."