Samrat Going Disinvestment Way

Anindita Chattopadhyay - New Delhi

The department of disinvestment has started the process for disinvesting Samrat Hotel. “It will not be put up for sale, but a lease-cum-management proposal is under consideration,” confirmed PV Bhide, joint secretary, department of disinvestment.

First the removal of Ashwani Lohani from the post of CMD of India Tourism Development Corporation, followed by the decision of putting Samrat on the disinvestment block points to one direction – a renewed effort to bring Ashok Hotel also under the hammer. Incidentally, Ashok was removed from the disinvestment list at the behest of tourism minister Jagmohan in March 2002.

According to ITDC sources, they have not received any official communication from the department of disinvestment as far as Samrat is concerned. “It is business as usual with us. We are taking in bookings and have advance bookings till March,” said an ITDC official.

Samrat was not on the disinvestment list earlier because it is considered a security risk as the hotel overlooks the prime minister’s residence.

According to a tourism ministry source, once Samrat is up for sale, Ashok will follow as a natural corollary. “The two hotels are not only built on the same land, but they share facilities as well. “Ashok Hotel’s electric substation, cooling towers, staff quarters are still in the premises of Samrat hotel. Further, their water and sewer lines are also common.”

When asked to comment Bhide said, “We will first sort out the issues involved. Till a consensus is reached between the ministries involved, we will not put it before CCD.” The tourism ministry still sticks to its earlier stand of running Ashok, say sources.