HPTDC seeks review of Cabinet's decision to outsource 14-loss making hotels

Time of India

11-07-2025

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The Himachal Pradesh Tourism Development Corporation HPTDC ) has urged the state government to reconsider its Cabinet decision to outsource operations and management of 14 loss-making hotels , saying a thorough viability study is essential before taking such a step.Speaking to the media in Shimla on Thursday, HPTDC Chairman RS Bali, who is also the Chairman of the state's Tourism Development Board, said, "The Cabinet took this decision using its discretion. But our Board of Directors had earlier resolved that HPTDC will conduct a feasibility and visibility study to assess why losses are occurring. We believe that, if renovated and supported, these properties can be successfully run by HPTDC itself."Bali emphasized that the hotels were already categorized into three classes profitable, moderate, and loss-making and that the most crucial requirement across all was renovation."If our hotels are renovated, their profitability can increase manifold. In our Board meeting, we decided to conduct a viability test for our loss-making properties. We want to study what minimal investment can improve them and how we can bring in revenue. Only then should any outsourcing decision be considered," he said."HPTDC can run on its own without government grants" Bali stated.He asserted that HPTDC has, over the last two and a half years, operated without any grants from the state government, solely on its own revenue."Every month, all departments receive government grants, but HPTDC has run without any. Despite this, we've increased our turnover from Rs 78 crore to Rs 109 crore," he said, adding, "We've paid salaries, allowances, and cleared Rs 40 crore of past dues without financial help. This is the result of our employees' hard work. I treat our staff as family. They have kept this organisation going."Bali said he had also written to Chief Minister Sukhvinder Singh Sukhu seeking funds specifically for renovation, and the Chief Minister had given in-principle approval."The CM assured us that our renovation project would be included in the Asian Development Bank (ADB) funding plan," Bali said."If we are given financial backing, we can renovate our hotels and I can officially commit that we will cross Rs 200 crore turnover. That's not difficult," he added."Outsourcing decision must be based on facts and study" Bali said referring to the Cabinet's recent decision to outsource 14 Category-C hotels.He further said, "We respect the government's authority. Under Article 79 of the Articles of Association, HPTDC is bound to follow government directives. But we also request that the government reviews its decision after allowing us to complete a proper visibility and viability study."The HPTDC chairman claimed the Cabinet may not have had full information before taking the call. "Some of these properties were constructed with ADB support but are lying closed. Some are functional and can be run efficiently with renovation. We believe we can manage them internally," he said."Since 1972, HPTDC has been the pride of the state. Thousands of employees serve thousands of rooms across Himachal, and lakhs of tourists feel the warmth of our hospitality. When VIPs like the President or Prime Minister visit, it's our staff that provides their catering." He said.He revealed that HPTDC even received an appreciation letter from the President of India for services during a visit to Himachal Pradesh "Our hotels are our flagship assets. We don't just serve food, we spread joy. Our staff are trained to greet every guest with a smile. HPTDC means happiness," he said.When asked about the planned relocation of HPTDC's head office to Kangra, Bali clarified that the decision was taken in the Board of Directors meeting before it went to the Cabinet."The government is the owner of HPTDC, and we follow their directives. There was no communication gap, the proposal was passed in the Board and then sent to the Cabinet." Bali said.Bali also addressed a past issue where an HPTDC employee approached the court seeking revival of the old pension scheme. He said, "We told the court we are still clearing old dues and need time. We've made sincere efforts and already cleared Rs 40 crore in liabilities."Responding to a recent report that the Chief Secretary did not pay for a private party hosted at an HPTDC hotel, Bali downplayed the controversy."The Chief Secretary is a high-ranking official. I believe that episode is over and should not be discussed here," he said."We urge the government to allow us time to conduct feasibility studies of these 14 hotels. Based on that, the Board will take a decision. If after that the government still wants to proceed with outsourcing, we will fully comply. But let the decision be made on the basis of facts, not just assumptions" he added.