Great Eastern sell-off not before Nov
Although the West Bengal government is now proceeding full steam for selling off the Great Eastern Hotel, Asia's oldest, to private bidders, it may not be the end of an era before November.
By PTI |
KOLKATA: Although the West Bengal government is now proceeding full steam for selling off the Great Eastern Hotel, Asia's oldest, to private bidders, it may not be the end of an era before November.
"It will take some time to complete the process," Industrial Reconstruction Minister Nirupam Sen said, adding "it is not expected to be over by November."
In the meantime, it will be business as usual for the 165-year-old heritage hotel which has bookings till September. The landmark hotel has been facing a deep financial crisis for a long time incurring an annual loss of about Rs 2 crore till the last fiscal as the wage bills for staff continued to rise.
West Bengal's cash-strapped Left Front government has been providing an annual subsidy of Rs 3.60 crore. In a bid to tide over the deep financial crisis, the state government floated the Early Retirement Scheme (ERS) for the hotel's 426 employees with DFID funds, aiming to hand over the property to a private owner.
Although the French hotel chain Accor Pacific intially evinced interest in acquiring the hotel, it later backed out as the issue of absorbing the employees remained unresolved with the unions, mainly the INTUC which controlled majority of the employees, vehemently opposing any retrenchment.
"It will take some time to complete the process," Industrial Reconstruction Minister Nirupam Sen said, adding "it is not expected to be over by November."
In the meantime, it will be business as usual for the 165-year-old heritage hotel which has bookings till September. The landmark hotel has been facing a deep financial crisis for a long time incurring an annual loss of about Rs 2 crore till the last fiscal as the wage bills for staff continued to rise.
West Bengal's cash-strapped Left Front government has been providing an annual subsidy of Rs 3.60 crore. In a bid to tide over the deep financial crisis, the state government floated the Early Retirement Scheme (ERS) for the hotel's 426 employees with DFID funds, aiming to hand over the property to a private owner.
Although the French hotel chain Accor Pacific intially evinced interest in acquiring the hotel, it later backed out as the issue of absorbing the employees remained unresolved with the unions, mainly the INTUC which controlled majority of the employees, vehemently opposing any retrenchment.
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