ITDC bleeds as govt parties

NEW DELHI: If Indian Tourism Development Corporation (ITDC) has anyone to blame for its financial troubles, it’s the government itself.

Among all those who have partied in country’s top ITDC hotels but have not paid the bill are several ministries and departments of the Central and state governments. ITDC owns country’s largest hospitality chain with 26 hotels including the Ashok Hotels.

Several companies, groups and individuals owe Rs 30 crore to Ashok Hotels and other four star ITDC hotels in New Delhi, Jaipur, Jammu, Bhubaneshwar, Mysore and Patna. Of Rs 30 crore, the government is the biggest debtor with Rs 10.83 crore in dues.

TDC’s flagship hotel, The Ashok in New Delhi, is one of the few profit-making ventures of the corporation. Located in New Delhi’s Diplomatic Enclave, Ashok is the first choice for any big government function. The hotel boasts of hosting the prime minister’s banquet for former US President Bill Clinton.

Sources in the Union tourism ministry said the government dues have swelled from Rs 5 cores in 2004 to Rs 10.8 crore in 2007.

Moreover, public sector units and travel agents, licensees, and cards holders collectively owe Rs 3.84 crore and Rs 6.62 crore respectively.

While ITDC officials said the faulting parties are regularly reminded and legal action is initiated, they are helpless when it comes to recovering money from government ministries and departments.