Government of India to lease out The Ashok Hotel

Government of India has decided to lease out The Ashok Hotel in Lutyens’ Dekhi to meet its disinvestment target for Financial Year 2021.

Government decides to lease out the iconic The Ashok Hotel in Lutyens’ Delhi and the adjacent 22-acre land for developing a market complex and service apartments as part of their asset monetization plan to meet its disinvestment target for FY21.

A finance ministry official said under condition of anonymity, “An inter-ministerial group headed by DIPAM secretary has cleared the proposal last month. It will now go to the core group on disinvestment headed by Cabinet secretary and then needs to be cleared by the Cabinet Committee on Economic Affairs.” 

The DIPAM (Department of Investment and Public Asset Management) in the start of this year had commissioned a report from the Feedback Infra for a feasibility study which had said that the government could garner around ₹7500 crore from asset monetization of the hotel properties. However, the official Stated above said government is not targeting any particular amount. He added, “The report is based on assessment before outbreak of the covid-19. In current times, who can guarantee how much it will fetch.”

Tourism minister Prahlad Singh Patel said in February this year replying a question in Lok Sabha, “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.”

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