The Hindu : Lukewarm response to TTDC privatisation move

Online edition of India's National Newspaper
Friday, Feb 21, 2003

Southern States

Southern States - Tamil Nadu

Lukewarm response to TTDC privatisation move

By T.S. Shankar

CHENNAI FEB. 20. The Tamil Nadu Tourism Development Corporation's move to let out its hotels and restaurants in the State, as part of efforts at encouraging privatisation, has elicited a ``lukewarm response''.

Out of 54 hotels, the Corporation decided to issue ``tender notification'' for 30 units, of which only eight have been served with ``approval notices'' and the process of finalising receipts of the bid amount has been initiated, said an official source. He was explaining the TTDC Board decision to come out with a franchise for 10-15 years.

Under the plan, the brand name `Hotel Tamil Nadu' would remain and the franchisee would be allowed only to manage the unit for the allotted period. The Corporation consent had to be obtained for any major structural alteration, and only tariff fixation would vest with the entrepreneur. Employees of the TTDC, working at these franchised units, would be brought under a VRS (voluntary retirement scheme) package, already in place.

The units, which have been let out under the franchise arrangement are at Melmaruvathur, Ranipet, Mamallapuram, Coonoor, Chidambaram, Pitchavaram, Thirukazhukundram, Nagapattinam and Kumbakonam.

The remaining units, which have not received the expected level of tender bids are - Salem, Rameswaram-II, Kancheepuram, Coimbatore, Tiruchi, Tiruchendur and Kanyakumari.

Sources in the TTDC said it was unable to match the service provided by private sector-owned units. Most of its workforce was aged 50 and more. The Corporation had taken a conscious decision of encouraging private sector participation by not only ``franchising'' its hotels and restaurants but also adopting the same methodology for operating its 21 tours with a fleet of 24 coaches. ``This year we managed the peak season between November and January, hiring luxury coaches from the India Tourism Development Corporation instead of opting for fleet acquisition'', an official said, adding a move to gradually ``phase out'' the tours division was also being considered.

The TTDC would now concentrate on putting in place better infrastructure at top tourist spots. Mamallapuram was chosen to begin this experiment with a financial assistance of Rs. 5 crores from Government of India, apart from Rs. 2 crores from the State Government.

Under a master plan drafted with consultancy provided by a HUDCO (Housing and Urban Development Corporation) architect, the project would refurbish and improve the area from the Tiger Caves to Five Rathas, encompassing north and south, and from Arjuna Penance to the Shore Temple on east to west.

The project cost would include landscaping, overall beautification of Mamallapuram and creation of a pedestrian zone, besides relocation of souvenir shops. Ultimately, the bus terminus would be shifted to an isolated area.

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