Outlets lying closed, CITCO suffers losses : The Tribune India

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Outlets lying closed, CITCO suffers losses

CHANDIGARH:Having failed to finalise the tenders for leasing out two of its prime outlets — Baithak at Kalagram and Drop In at Sector 34 — for over a year, the Chandigarh Industrial and Tourism Development Corporation (CITCO) has been suffering a loss of lakhs every month.

Outlets lying closed, CITCO suffers losses


Tribune News Service  

Chandigarh, April 26

Having failed to finalise the tenders  for leasing out two of its prime outlets — Baithak at Kalagram and Drop In at Sector 34 — for over a year, the Chandigarh Industrial and Tourism Development Corporation (CITCO) has been suffering  a loss of lakhs every month.

Baithak is non-functional since November  2016, while the Sector 34 outlet is lying vacant for over a year. 

Baithak was leased out  to a  company,  Sunrise Integrated Facility Private Limited, on a monthly rent of Rs 6  lakh,  but the  company failed to run the  outlet  properly  and left  without  completing the  contract tenure. CITCO has failed to  lease out the outlet  since then.  

Similarly, CITCO  failed to  find a suitable firm to run Drop In  at Sector  34. Located  in the  one of the  busiest  markets of the  city, the  outlet is lying abandoned.  Sources  said while the property  of the  outlets  has started  deteriorating, CITCO  was spending  a huge  amount  on the  salary  of the  security men deputed  at  both outlets. The sources  said CITCO  had tried  to lease out the  outlets in the  past,  but the tenders  could not be finalised for various  reasons. Uma Shankar Gupta,  Chief  General Manager, CITCO, said the tender for Drop In  had been  floated  while the  tender for Baitahk  would be  floated  shortly.  

Mountview sale picks up   

After facing losses for years, five-star Hotel Mountview  of CITCO  recorded  a profit  in 2017-18. Sources   said the sale of the hotel in the last financial year was  Rs 29.54 crore, while it was Rs 24.46 crore in the previous  financial year. The total profit was Rs 64.60 lakh.    

CITCO to close  airport outlet     

Facing losses, CITCO has decided to shut down its outlet at the  international airport from May 15.  

CITCO Chief General Manager Uma Shankar Gupta said the decision had   been  taken as the  outlet was  running  in losses  since   its  opening. He said CITCO  had  issued a notice to the airport authorities  for   closing the outlet.  However, the other outlet at the domestic  airport  would continue to operate. CITCO had opened two food outlets at the airport in December 2016, but both of these incurred  losses  of lakhs.

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