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PIPDIC to buy 51% equity held by ITDC in Ashok hotel

  • PIPDIC to buy 51% equity held by ITDC in Ashok hotel
    Summary: The PIPDIC would have to shell out around ?65 crore to buy the equity stakes of ITDC in hotel Ashok. Hotel Pondicherry Ashok is a joint venture in which ITDC holds 51%, with PIPDIC holding the remaining 49 per cent stake. The Pondicherry Industrial Promotion Development and Investment Corporation Limited has decided to buy 51% shareholding of India Tourism Development Corporation (ITDC) in Hotel Pondicherry Ashok at Kalapet. The government had given the go-ahead to PIPDIC to buy the share after the Union Ministry of Tourism had decided to transfer its holdings in three properties — Hotel Pondicherry Ashok, Hotel Patliputra Ashok in Patna and Hotel Donyi Polo in Itanagar — to the respective State governments. The Chief Minister would also meet Union Minister for Agriculture Radha Mohan Singh.

    The PIPDIC would have to shell out around ?65 crore to buy the equity stakes of ITDC in hotel Ashok. The Pondicherry Industrial Promotion Development and Investment Corporation Limited has decided to buy 51% shareholding of India Tourism Development Corporation (ITDC) in Hotel Pondicherry Ashok at Kalapet. The government had given the go-ahead to PIPDIC to buy the share after the Union Ministry of Tourism had decided to transfer its holdings in three properties — Hotel Pondicherry Ashok, Hotel Patliputra Ashok in Patna and Hotel Donyi Polo in Itanagar — to the respective State governments. Hotel Pondicherry Ashok is a joint venture in which ITDC holds 51%, with PIPDIC holding the remaining 49 per cent stake. Chief Minister V. Narayanasamy, who held a meeting with senior officials and PIPDIC representatives on the restructuring of the hotel on Tuesday, told The Hindu that the government had taken an in-principle decision to buy the stakes and develop the hotel as a revenue generating enterprise. The PIPDIC would have to shell out around ?65 crore to buy the equity stakes of ITDC, he said, adding that after shares were bought, the government would call for global tender inviting private players to run the hotel on a revenue-sharing basis. The territorial administration had communicated to the Ministry its decision to procure stake holding of ITDC in the hotel, he said. Minister for Tourism Malladi Krishna Rao, Minister for Industries M.O.H.F Shahjahan, PIPDIC chairman R. Siva and Chief Secretary Manoj Parida attended the meeting. CM for Delhi Mr.

    Narayanasamy on Tuesday evening left for New Delhi to hold meetings with Union Home Ministry and Finance Ministry officials. The Chief Minister would also meet Union Minister for Agriculture Radha Mohan Singh. Mr. Narayanasamy said he would apprise the Minister on the need for early disbursal of funds for drought relief.

    Source: http://www.thehindu.com/news/cities/puducherry/pipdic-to-buy-51-equity-held-by-itdc-in-ashok-hotel/article18117010.ece


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