India Tourism Development Corporation Details Disinvestment Progress of Hotel Units
India Tourism Development Corporation Ltd (ITDC), a Government of India Undertaking, has provided updates detailing the ongoing process of disinvestment concerning its hotel units and joint venture subsidiary companies. The company's scrip symbol is ITDC (EQ), and its scrip code is 532189.ITDC has consistently informed stakeholders regarding the disinvestment process, which has been ongoing since 2016. The corporation noted that major developments related to this disinvestment are disclosed immediately, and regular updates are shared through Annual Reports and Notes to Quarterly Financial Results.
Key Disinvestment Milestones and Agreements
The disinvestment process has seen multiple property transfers and agreements with various state governments and central ministries over the years.In early 2016, the Board of Directors of ITDC, acting under the instruction of the Ministry of Tourism, Government of India, approved actions concerning various properties. These included proposals to examine the lease or sale of all properties, and for properties on leased State Government lands, the possibility of leasing them out in partnership with the State Government.
Specific properties highlighted for the disinvestment process included:
- Hotel Jaipur Ashok at Jaipur: A property leased to ITDC by the State Government of Rajasthan, which desired to return it to the State.
- Lalitha Mahal Palace Hotel at Mysore: A property leased to ITDC by the State Government of Karnataka, which desired to return it to the State.
- Hotel Lake View Ashok at Bhopal: A property leased to the JV Subsidiary (MP Ashok Hotel Corporation Ltd.) of ITDC by the State Government of MP.
- Hotel Brahmputra Ashok at Guwahati: A property leased to the JV Subsidiary (Assam Ashok Hotel Corporation Ltd.) of ITDC by the State Government of Assam.
- Hotel Kalinga Ashok at Bhubaneswar: A property where the State Government of Odisha accorded approval for sub-lease/O&M contract.
- Hotel Ranchi Ashok at Ranchi: A property leased to the JV Subsidiary of ITDC by the State Government of Bihar.
- Hotel Jammu Ashok at Jammu: A property leased to ITDC by the State Government of J & K, where the lease had expired.
- Hotel Gulmarg Ashok at Gulmarg: A property leased to ITDC by the State Government of J & K.
Subsequent Property Transfers and Transactions
Over the years, several key transactions were executed:- On September 5, 2017, a tripartite Memorandum of Understanding (MoU) was executed amongst ITDC, Ministry of Tourism, and the State Government of Rajasthan for the transfer of Hotel Jaipur Ashok, Jaipur, to the State Government of Rajasthan at a negotiated value of Rs. 14.00 crore without any liabilities and encumbrances.
- On September 19, 2017, a Quadripartite Memorandum of Understanding (MoU) was executed amongst ITDC, Arunachal Pradesh Industrial Development & Financial Corp Ltd (APIDFC), Donyi Polo Ashok Hotel Corporation Limited (DPAHCL), and the Government of Arunachal Pradesh (GoAP) for the transfer of 51% Equity stake of ITDC in DPAHCL to APIDFC/GoAP.
- On September 20, 2017, an MoU was executed for the transfer of Lalitha Mahal Palace Hotel, Mysore, to the State Government of Karnataka.
- On November 31, 2017, handover of land measuring 4.41 acres of Hotel Janpath, New Delhi, to the Ministry of Housing and Urban Affair (MoHUA) took place.
- On November 29, 2018, a tripartite MoU was executed among ITDC, Ministry of Tourism, and the State Government of Bihar for the transfer of Hotel Patliputra Ashok, Patna, to the State Government of Bihar at a negotiated value of Rs. 13.005 crore without any liabilities and encumbrances.
- On February 9, 2023, an MoU was signed for the transfer of Hotel Jammu Ashok, Jammu, of ITDC to the Government of J&K. The agreement stipulates that ITDC will receive compensation for the transfer of assets, with the agreed compensation amount being Rs. 11, 09, 75, 370/-.
- On February 14, 2023, an MoU was signed for the transfer of 51% equity shares held by ITDC in Punjab Ashok Hotel Company Limited (related to the incomplete project of Anandpur Sahib) to the Government of Punjab / Punjab Tourism Development Corporation Limited (PTDC) for an agreed consideration of Rs. 79,39,257/-.
Operational Updates and Future Plans
As of an update in 2026, ITDC confirmed that there was no update in the disclosures given to the stock exchange on 09.02.2026 in the notes to the Quarterly and 9 months ending Un-audited Financial Results for 31.12.2026.The company also noted that while the Hon'ble Union Finance Minister announced the NMP 2.0 in her Budget Speech for financial year 2026-27, which mentions ITDC Hotels as part of the redevelopment plan through PPP mode, ITDC had not received any directions regarding this from the Government.
Further detailing the status of Hotel Ashok-Samrat Complex, a feasibility report was reviewed by the Inter Ministerial Group (IMG) on 20.07.2020. The consultant recommended dividing the site into four land parcels:
| Parcel | Description | Acreage | Status/Recommendation |
|---|---|---|---|
| Parcel 1 | Samrat Hotel | 4.73 acres | To be retained by ITDC. |
| Parcel 2 | Ashok Hotel | 11.5 acres | Recommendation for licensing out for (30+30) years on Operation, Management and Development (OMD) model. |
| Parcel 3 | Commercial Development | 1.83 acres | Spare land. |
| Parcel 4 | Hotel/Serviced apartments development | 6.3 acres | Spare land. |
These recommendations were discussed in Inter Ministerial Group (IMG) meetings held on 20.07.2020 and 06.01.2021, and subsequently in Core Group of Disinvestment (CGD) meetings held on 27.10.2020 and 15.03.2021.
ITDC Stock Price Movement
Today, India Tourism Development Corporation Limited shares edged higher to settle at ₹635.2, marking a substantial 20.00% gain for the session. The stock experienced heavy trading activity, with investors moving a total volume of 34.37 million shares today.Source:
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