Plan afoot to privatise hotels run by CITCO

Ramkrishan Upadhyay
Tribune News Service
Chandigarh, July 22

In a major move, the UT Administration is considering privatising three hotels in the city — Mountview Shivalikview and Parkview. While Mountview is situated in Sector 10, Shivalikview is in Sector 17 and Parkview in Sector 24.

Sources said the privatisation process had been started on the directions of the Government of India, which has asked all states to privatise sports stadia and hotels under their control. The sources said the NITI Aayog had recently sent a communication in this regard to the UT.

The sources said while the Administration had decided not to privatise sports facilities in the city, it was considering privatising the hotels.

The Administration had formed  the Chandigarh Industrial and Tourism Development Corporation (CITCO) to run the  hotels.

Mountview was the first five-star hotel  of the city having 144 luxury rooms. Though the Administration  is running the hotels  with its own  resources, their  performance  has been cause of concern for it. Due to a stiff competition from other five-star hotels in the city, these hotels have been affected. 

Manoj  Kumar  Parida, UT Adviser, confirmed the  move of  privatisation, but said any decision in this regard would be taken  after discussions with all stakeholders. He said the  issue would also  be  taken  before the Advisory  Council  of the Administrator. He said it would be ensured that  no employee lost his job. The sources said the Administration was holding a high-level  meeting next  week to  discuss the proposal.

At present, over 800 employees are  working  in the  CITCO-run  hotels. CITCO  had  taken control of Mountview  in the early eighties. The  hotel  was  earlier  under the  ownership  of  the Oberoi Group of Hotels.

This  is the  second major  sector after electricity  which the Administration is  planning to give in private hands. The Administration had   recently  floated tenders for the  appointment  of a consultant to suggest  ways for privatisation of the Electricity Department . The sources said the Administration  might also appoint  a consultant   to  suggest  ways for privatisation  of the hotels.

 Centre’s directive 

• The privatisation process has started on the directions of the Centre, which has asked all states to privatise sports stadia and hotels under their control. The NITI Aayog recently sent a communication in this regard to the UT
• Sources said while the Administration had decided not to privatise sports facilities in the city, it was considering privatising the hotels

Decision after talks with stakeholders: Adviser

UT Adviser Manoj Kumar Parida confirmed the move, but said any decision in this regard would be taken after discussions with all stakeholders. He said the issue would also be taken before the Advisory Council of the Administrator. He said it would be ensured that no employee lost his job.