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If the States want to take over the joint venture properties, it will be handed over to them after determining the value as is done in the case of other ITDC properties for determining the reserve price.

NEW DELHI, April 18

THE Cabinet Committee on Disinvestment (CCD) has cleared a package of concessions to spur State Governments to concur with the sale of joint venture hotel properties developed by ITDC with them.

The joint venture hotel properties of ITDC include Hotel Neelachal Ashok, Puri, Hotel Lakeview Ashok, Bhopal, Hotel Ranchi Ashok, Ranchi, Hotel Bhramputra Ashok, Guwahati, Hotel Pondicherry Ashok, Pondicherry, Hotel Donyi Polo Ashok, Itanagar and Hotel Punjab Ashok, Anandpur Sahib.

If the States agree to sell the joint venture properties, 100 per cent of the unearned increase in the value of land would be passed on to them.

Besides, the outstanding principal amount of the project loan extended by ITDC to the individual joint venture companies would be adjusted against the bid value for computing the unearned increase.

The CCD has further decided to write-off the outstanding interest on project loans and working capital loans extended by ITDC to individual joint venture companies.

Moreover, the loss on account of principal amount of working capital loan will be shared in proportion to the shareholding of the States and the ITDC in the joint venture properties.

The CCD also decided to write-off the arrears of management fee receivable by ITDC from the joint venture properties.

If the States want to take over the joint venture properties, it will be handed over to them after determining the value as is done in the case of other ITDC properties for determining the reserve price.

The reserve price would be apportioned on the basis of passing on 100 per cent unearned increase in the value of the land to the States.

The States should also settle all outstanding liabilities including outstanding ITDC loans and take over the staff employed with the joint venture properties, Disinvestment Ministry officials said.

For ITDC properties located at Jaipur, Bhubaneswar and Patna, 100 per cent of the unearned increase in the value of the leased land may be offered. The properties are Hotel Kalinga Ashok, Bhubaneswar, Hotel Jaipur Ashok, Jaipur and Hotel Pataliputra Ashok, Patna.

In the case of the Bhubaneswar property, where the land is partly owned by ITDC and partly on lease from the Government of Orissa, the amount of the bid assigned towards land value would be apportioned in the ratio of the land areas owned by ITDC and leased to ITDC so that 100 per cent unearned increase is given to the State Government only on the land owned by it and leased to ITDC.

"The package was cleared by CCD during a meeting held on April 15," the officials said.

The Government is in the process of selling its 100 per cent equity in all these joint venture hotel properties set up in collaboration with the respective State Governments, the officials said.

The response of the States to the sale of these joint venture properties has been lukewarm.

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