Date:25/12/2006 URL: http://www.thehindu.com/2006/12/25/stories/2006122504701000.htm

National

Panel welcomes decision on ITDC

Special Correspondent

NEW DELHI: A Parliamentary Committee said that the India Tourism Development Corporation (ITDC) should act as a catalyst for tourism development across the country.

Welcoming the Government decision to not further disinvest the ITDC property, the Committee said it would remove uncertainty and fear among employeesand bring back business inflow into the hotels. In its report, the Committee, headed by Sitaram Yechury, felt that the option of leasing out the hotel property would be in the best interest of the ITDC as it was not in a position to make capital investments in its hotels for renovation.

The Committee recommended that the Department of Tourism offer some ITDC property, including joint venture property, on a lease-cum-management contract basis to the private sector for making capital investments.

The Committee also recommended that the Union Government grant matching equity support to the ITDC on a 1:1 basis to upgrade and renovate the Ashok group of hotels.