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.

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.