In its recent decision, the Central government decided to license out the splendid 5-star hotel, ‘The Ashok’ – spreading across 11-acres, situated in the heart of India’s national capital through the operate-maintain-develop (OMD) mode for a time period of at least 60 years.
According to the sources, the Centre will monetise its spare land of nearly 6.3-acres for commercial development by making 600-700 units of luxurious-serviced residences or apartments in collaboration with private sector entities. Besides, 1.83-acres of land parcel have been proposed for dwelling a magnificent retail office development plan.
Meanwhile, Hotel Samrat, adjacent to The Ashok will be retained by the India Tourism Development Corporation (ITDC). The ITDC is a public sector undertaking founded in the year 1966 under the Ministry of Tourism, Government of India. It owns the Ashok, Samrat and many other well-known hotels from across India.
The government will hold a road-show on August 22 to look at a glance at the participants over the envisioned models built-in for the monetisation plan. The government has also drawn an estimated budget of ₹450 crore for its renovation and remodelling.
According to the sources, the proposal was settled by a core group of secretaries on disinvestment, chiefly headed by the Cabinet secretary.
The privately-held groups will manage the hotel housing the specified number of rooms, retail office spreading to approximately 200,000 sq.ft of an area and a large banquet-hall covering the space of nearly 30,000 sq.ft with all conventional facilities including 8 restaurants, covering an area of 25,000 sq.fts.