Last month, the government launched the asset monetisation pipeline under which brownfield assets worth INR 6 lakh crore, in various sectors including road transport, railways, power, civil aviation, shipping ports and telecommunications may be monetised by fiscal ending March 2025. The ownership control would be retained with the government.
After the announcement by Finance Minister Nirmala Sitharaman about this National Monetisation Pipeline which includes eight India Tourism Development Corp assets including “The Ashok” and the adjacent Hotel Samrat, the government now plans to lease out ‘The Ashok’, the sprawling 25-acre property in the heart of the national capital, to investors. Taking advantage of its location, the idea is to turn it into a ‘multi-purpose’ building, housing an array of facilities including service apartments and a mall, as reported by the Economic Times. The details of the bidding process is being worked out by the Tourism Ministry and is likely to be completed in the current fiscal.
The lease could be of 90-100 years. Since the hotel land spreads over 25 acres and is close to the Diplomatic Enclave, the service apartments could attract international dignitaries, said an official to the PTI.
“The government is not looking to ramp up collections from this transaction. The intent is to utilise the asset to its full potential and build a multi-purpose building like those in foreign countries,” the official added.