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Govt sells 2 more ITDC properties

Parul Gupta

The government has sold off two more India Tourism Development Corporation properties at Aurangabad and Kolkata. However, its attempts to find a buyer for the Khajuraho Ashok have failed.

The Kolkata property was bagged by the MBD Group, a book publishing house, for about Rs 220 million, while Aurangabad Ashok went to the Loksangam Group for Rs 174 million.

Both the prices were substantially higher than the reserve price fixed for these hotels. While the reserve price for the Kolkata Ashok was to the tune of Rs 150 million, it was about Rs 130 million for the Aurangabad Ashok.

With the sale of the two hotels on Thursday, the government has so far managed to sell four out of the five properties which were put on the block in the third tranche.

With the end of the third tranche of ITDC divestment, the government has added about Rs 2.68 billion to its kitty by selling 13 ITDC properties. The government had earlier mobilised Rs 1.81 billion by selling nine hotels in the first two tranches. The government had, on Tuesday, sold its properties at Kovalam and Manali.

Muscat-based Mohammed Ali, who also owns the Meridien at Cochin, managed to bag the Kovalam Ashok for about Rs 455 million, while a Guwahati-based hotelier walked away with the Manali property for Rs 36 million. Kovalam Ashok was the second case which attracted foreign direct investment. The only other case of FDI in an ITDC hotel was when Singapore-based Silverlink Holdings bagged the Lodhi hotel for Rs 760 million.

While the reserve price for the Kovalam Ashok was about Rs 420 million, it was Rs 19 million for the Manali property.

Interestingly, while the Manali property had attracted over 30 expressions of interest, only five bidders came forward with their final price bids.

Similarly, there were 20 EoIs for Kovalam Ashok, but only five price bids were received.

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