Cabinet approves govt’s exit from three ITDC hotels

The Union Cabinet on Wednesday approved a proposal for the Centre to exit three Ashoka hotels of the India Tourism Development Corporation (ITDC) Ltd in Bharatpur, Bhopal and Guwahati.

“The decision has been pending for some time. Many of these hotels are joint ventures with State governments,” Finance Minister Arun Jaitley told reporters after the meeting.

According to the decision, the properties would be leased or sub-leased jointly with the States concerned or returned to the States after fair valuation.

States would then have the option to upgrade and operate the hotels by involving the private sector or using them for their own requirements.

While Ashoka Bhopal is likely to be turned into a convention Centre by the State government, Ashoka Bramhaputra is expected to be converted into a State guest house.

“I don’t think the real intention is the consideration (of revenue) itself. It is a government-to- government transfer,” Jaitley said when asked on how much funds the disinvestments would raise.

Meanwhile, the Cabinet also approved modifications in the recommendations of the Seventh Pay Commission on pay and pension benefits.

The decision would allow revision of pre-2016 pensioners and family pensioners which would benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.

“The modified formulation of pension revision will entail an additional benefit to the pensioners and an additional expenditure of approximately ₹5,031 crore for 2016-17,” said an official release, adding it will come into effect from January 1, 2016. The Centre’s annual pension bill will now be ₹1,76,071 crore.

It also approved the retention of percentage-based regime of disability pension for defence, pensioners that was implemented after the Sixth Pay Commission. However, the Seventh pay panel had recommended that it should be replaced by a slab-based system.

Meanwhile, in a slew of other decisions, the Cabinet also cleared a proposal to declare Vijayawada Airport as an international Airport.

It also approved the signing of Memorandum of Understanding (MoU) on Cooperation in the sphere of civil aviation between India and Spain.

A new Central Sector Scheme for food processing was also approved. Termed Sampada or Scheme for Agro Marine Processing and Development of Agro Marine Clusters, it has been allocated ₹6,000 crore.

The Cabinet also gave its ex-post facto approval for an MoU with Japan on railway safety in maintaining track and rolling stock.

It also gave ex-post factor approval for another MoU for Third Line of Credit of $4.5 billion to Bangladesh for implementation of development projects. Ex-post facto approval was also given to an MoU with Malaysia for developing a urea and ammonia manufacturing plant there with offtake to India.

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