The Hindu Business Line : Gujarat Govt move to hive off hotels for tourism promotion

Project details
SBI Capital Markets Ltd has been appointed as an advisor to TCGL for this transaction.
The properties identified for sale, include the famous Palace Beach Resort by the Arabian Sea at Chorwad near Somnath in Junagadh district, which was taken over by the TCGL and converted in to a resort.

Ahmedabad April 12 As part of measures to provide a thrust to tourism promotion in Gujarat and to bring the State to the forefront of the tourism map of India, the Tourism Corporation of Gujarat Ltd (TCGL) has decided to sell off its prime properties across the State.

It has invited global expression of interest from Indian companies, overseas corporate bodies and eligible foreign companies for sale of its properties located in prime tourist locations in Gujarat, an official release said today.

TCGL has initiated steps to sell six built-up properties and nine parcels of land in the first phase, on `as is where is basis', without any responsibility on the buyer for past dues (statutory or otherwise) on these assets and without any obligation to continue the staff presently employed for managing the assets for exclusive tourism related use.

SBI Capital Markets Ltd (SBI Caps) has been appointed as an advisor to TCGL for this transaction.

The properties identified for sale, include the famous Palace Beach Resort by the Arabian Sea at Chorwad near Somnath in Junagadh district, which was taken over by the TCGL and converted in to a resort. The decision to sell off properties comes close on the heels of the Gujarat Government taking various measures to improve the tourism industry in the State. The State Government's declaration of the year 2006 as Tourism Year had evoked mixed response.

Recently, the State Government also announced partial relaxation of prohibition policy in the Special Economic Zones with a similar objective, keeping in mind foreign visitors.

The other measures include setting up of a Gujarat Tourism Council, declaration of hotel investment incentive scheme, introduction of policies for heritage hotels, eco-tourism policy and medical tourism, reduction in entertainment, luxury taxes and VAT and increasing budget allocation for tourism sector from Rs 30 crore to Rs 100 crore with a provision of Rs 60 crore for infrastructure and basic facilities. Also, a provision of Rs 100 crore for each year has been proposed for tourism sector during the 11th Five Year Plan.

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