Financial Daily from THE HINDU group of publications
Sunday, Apr 25, 2004
Financial Daily from THE HINDU group of publications Sunday, Apr 25, 2004 |
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Hotels Industry & Economy - Taxation Govt mulls hiking turnover levy on Delhi Centaur Ashwini Phadnis
New Delhi , April 24 THE Government is examining a proposal to increase the turnover levy on the Air India (AI) subsidiary, Hotel Centaur in Delhi, from the existing two per cent to six per cent. Official sources, while confirming that such a proposal was being examined, felt that the move would not affect the ongoing divestment programme of the Government. "The move will neither delay the divestment process nor is it likely to lead to any revenue loss for the Government," the sources said. However, this is contested by those who feel the move could lead to a waning of interest from the prospective bidders. "The move could lead to a situation where the Government does not receive too much monies upfront from the sale. But then the Government will keep receiving monies regularly from the lease rental," the sources said. The proceeds raised from the Centaur divestment are to be ploughed back to AI, which is the owning company. Interestingly, the Government has already called in and received 39 bids for the Hotel Centaur (Delhi airport) of which 33 were accepted and six were rejected. In the case of the flight kitchen at Mumbai airport, the Government received 24 bids, of which 19 were accepted. While calling for expression of interest for the businesses, the Government had specified that individual party/parties or consortium should have a combined net worth of Rs 25 crore to bid for the Delhi Centaur and Rs 2 crore to bid for Chefair Mumbai. The documents also stated that any change by way of withdrawal or substitution of any member of the consortium or joint venture or any change affecting the composition of consortium or joint venture may be permitted but only with the specific approval of Air India/Government.
More Stories on : Hotels | Taxation | Disinvestment
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