HP approvesRs.49L consultancy fee to appoint a transaction adviser
Shimla, June 16 -- Himachal government has approved Rs.49.56 lakh consultancy fee to appoint a transaction advisor for operating the eight loss-making hotels of Himachal Pradesh Tourism Development Corporation (HPTDC) in public-private partnership (PPP) mode.
Eight of the HPTDC's 14 loss-making hotels will be operated under an Operation and Maintenance (O&M) arrangement. These hotels had long been unable to generate a profit, and acting on the recommendation of the corporation's management, the government finally decided to hand them over for O&M.
The tourism department has conveyed the government's approval for bearing the consultancy expenditure and depositing the amount into the account of the Himachal Pradesh Infrastructure Development Board (HPIDB). The communication however clarified that the expenditure would subsequently be recovered from the revenue generated through the operation of the properties under the proposed operation, management and maintenance OM&M arrangement.
This comes after a letter by HPTDC, informing the government about its inability to make the payment owning to financial crisis. According to a letter issued by Vijay Kumar, special secretary of the tourism and civil aviation department, the government will pay the consultancy fee to the company appointed by the state infrastructure development board. Consequently, the process of operating 8 of the Tourism Development Corporation's loss-making hotels-out of a total of 14-under the Public-Private Partnership (PPP) will begin soon.
The loss-making hotels include Hotel Lake-View in Bilaspur (25 rooms), Hotel Mamleshwar in Mandi district (10 rooms), and the famous Hotel Apple Blossom in Shimla (26 rooms). Additionally, Hotel Sarvari (Kullu), Hotel Old Roscommon (Kasauli), Hotel Shivalik (Parwanoo), and Hotel Chanshal and Hotel Giriganga (Rohru region). HPTDC has failed to get back on track following the COVID-19 pandemic. After deliberating on various factors-including an inability to compete effectively in the market-the Board of Directors of the State Tourism Development Corporation recommended to the government that the management of these hotels be handed over under an O&M model.
HPTDC on Monday has withdrawn all discount and concessional facilities extended to VIPs, board members and accredited media persons at its hotels across the state with immediate effect. The decision was communicated through an order issued by HPTDC managing director Rajiv Kumar following directions from the special secretary (tourism and civil aviation), Himachal government. As per the order, withdrawal of concessions has been necessitated by prevailing financial condition of both the state government and the tourism corporation....
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