ITDC takes PPP route to expansion

NEW DELHI: In a bid to meet the shortage of hotel rooms in the capital ahead of Commonwealth Games 2010, public sector hospitality major ITDC is chalking out an expansion plan through the public-private partnership route. Plans are afoot to identify at least three hotel plots in Delhi, and develop them in association with an international or domestic hospitality chain.

A global tender would soon be floated inviting private sector participation for a joint venture with ITDC for developing 700-800 rooms across three properties in the five-star category, with an outlay of around Rs 1,000-1,200 crore.

“We plan to take the JV route for all our expansion purpose,” an ITDC official told ET. The international or domestic partner has to bring in equity and also its expertise in running the properties, officials added. ITDC recently floated a global tender seeking an international partner for its duty-free business. Plans are to hive off the duty-free business which would scout for business opportunities in India and abroad.

A similar route may also be taken for developing conventions and exhibition centres in ITDC hotels at Delhi, Guwahati, Bhubeshwar, Jammu, Gulmarg and Jaipur. The new convention centre at Delhi within the Ashoka-Samrat Hotel complex will have over 3,800 seats. ITDC has recently submitted plans to MCD and NDMC for adding new wings to existing properties at Asoka and Janpath. Plans are to add another 165 rooms in a new tower adjoining Asoka and another 65 rooms in the
Janpath property.

Plans are also afoot to have a 30-40 room property at the Qutub institutional area. Renovation and upgradation of current properties at Asoka, Samrat and Janpath are already on.

ITDC officials said that the expansion would be funded through internal accruals and private sector participation. ITDC has posted net profit of Rs 10.65 crore in the first six months of FY07, against a loss of Rs 4.44 crore in the same period last year.

Its 16-hotel chain earned profits of around Rs 7.70 crore, as against profit of Rs 0.44 crore in the first half of last year. The duty free business which had posted a net loss of Rs 3.66 crore in the first half last financial year, posted a profit of Rs 2.64crore in the first six months of this year, officials said.