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Rediff.com  » Business » It's free for all at ITDC's Ashoka

It's free for all at ITDC's Ashoka

Source: PTI
May 16, 2007 11:31 IST
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Barely able to stand on its own feet after the disinvestment blow, the Indian Tourism Development Corporation is now struggling to get unpaid dues totalling Rs 15 crore (Rs 150 million from the government.

According to the official figures, ITDC's flagship brand Ashoka has more than Rs 12.1 crore (Rs 121 million) dues pending against the government departments, ministries, companies and state-run airlines.

Government and the public sector undertakings put together owe more than Rs 89 lakh (Rs 8.9 million) to Ashoka's lesser twin Hotel Samrat.

The situation at Hotel Janpath is no better since it has to get more than Rs 2.6 crore (Rs 26 million) due from the government and PSUs.

In total, these three Delhi hotels put together need to recover more than Rs 30 crore (Rs 300 million) from different parties of which government's share is more than half the amount.

Delhi alone accounts for a major chunk of defaulters. The total amount due from different parties in the other five of
ITDC hotels in the country is only Rs 1.82 crore (Rs 18.2 million) out of a total due of Rs 32.2 crore (Rs 322 million).

Outside Delhi, Hotel Patliputra Ashok in Patna needs to recover more than Rs 31 lakh (Rs 3.1 million) from the Bihar government and Rs 13.8 lakh (Rs 1.38 million)
from the Central government.

Unpaid bills of the 'private parties'  are more than Rs 27.8 lakh (Rs 2.78 million) at this loss-making ITDC entity in Patna. 

In total, Hotel Patliputra Ashok has more than Rs 91.6 lakh (Rs 9.16 million) against odd parties which is yet to be recovered.

It is only at Hotel Lalitha Mahal Palace in Mysore where there are zero dues against the State government, PSUs,
private parties and travel agents.

But here too, Central government stands to pay about Rs 16 lakh (Rs 1.6 million) to the hotel and unrealised credit card amount is to the tune of Rs 53 lakh (Rs 5.3 million).

The other properties ITDC where the government has been defaulter were at Hotel Kalinga Ashok (Rs 1,29,000)
Bhubaneshwar, Hotel Jaipur Ashok (Rs 2,22,000) Jaipur and Hotel Jammu Ashok (Rs 14,300).

With exception of Hotel Lalitha Mahal Palace Mysore, airlines, travel agents and credit card holders were the most
common defaulters at all the ITDC hotels.  

After feeding the politicians, company bigwigs and bureaucrats free for years, ITDC nearly Rs 184.15 crore (Rs 1.84 billion) through market borrowing from financial institutions, banks, budgetary support from the government.
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