18 KSTDC properties to get spruced up under PPP model

Cash-strapped corporation suffers from severe staff shortage

The cash-strapped Tourism Department seems all set to push for handing over prime State-owned hotels for renovation and maintenance under Public Private Partnership (PPP) model. Tourism Minister R.V. Deshpande told The Hindu that 18 properties, including six Mayura-brand hotels, would be developed on a Renovate Operate Maintenance and Transfer (ROMT) basis for a 30-year period.

The value of these properties, estimated at Rs. 11 crore, will be e-auctioned. They are expected to fetch Rs. 40 lakh revenue, which would be utilised for providing amenities at other tourist spots, he added. A similar experiment was undertaken in 2003, but of the 31 properties which were handed over to private players, seven had to be taken back by the government owing to violation of agreement.

Opposition

However, developing Hotel Mayur Sangam at Mekadatu in Kanakapura taluk on PPP model has been dropped, following stiff opposition from Energy Minister D.K. Shivakumar.

Aravind Jadhav, Additional Chief Secretary, Tourism, said the Karnataka State Tourism Development Corporation (KSTDC) has no funds and has been facing severe shortage of staff. There is no staff in 17 districts. “Renovation of properties requires Rs. 40 crore and annual maintenance costs are Rs. 4 crore,” he said.

“There are no basic amenities such as drinking water, toilets, quality accommodation, interpretation centres, vehicles, guides and food courts at these properties,” Mr. Deshpande said.

All properties would be branded as ‘Mayura’ which is the trademark of the KSTDC, and the private partner will mandatorily promote the same trademark. Properties would not be sold or leased out to any other private partner. All developers must establish an information bureau at the property and provide bookings through the KSTDC.

The private partners can undertake additional construction of facilities in properties with prior approval of the Director of Tourism. Besides the existing 133 rooms, another 200 rooms would be built on 18 properties, which would generate 800 jobs. Even after renovation, all properties would be ‘budget class’ and cater to the common man, Mr. Jadhav said.