Demands government support to revive loss-making units instead of leasing them out
Shimla: Tourism Development Corporation Chairman Raghuvir Singh Bali has openly opposed the state cabinet’s decision to hand over 14 hotels of the Himachal Pradesh Tourism Development Corporation (HPTDC) to private players on an operation and maintenance basis.
Addressing a press conference in Shimla on Friday, Bali questioned the process behind the move, stating that HPTDC had not submitted any formal proposal to the government regarding the transfer of these units. “Despite no proposal from our side, the decision has been taken. This is surprising,” he said.
He urged Chief Minister Sukhvinder Singh Sukhu to reconsider the cabinet’s decision, arguing that the government should focus on strengthening HPTDC instead of leasing out its properties. “Some of these hotels may be in loss today, but with proper support and revival plans, we can turn them profitable. Privatisation is not the solution,” Bali asserted.
The decision to run the 14 HPTDC hotels on an operation and maintenance model was recently approved by the cabinet as part of a larger financial restructuring effort. Many of the corporation’s properties have been underperforming for years, leading to cumulative losses and putting pressure on state finances.
HPTDC, once considered the face of Himachal’s hospitality sector, has been struggling financially, with several of its properties failing to generate adequate revenue due to declining occupancy, inadequate marketing, and delayed renovation work. This has made the corporation increasingly reliant on government support to maintain its operations.
Bali, however, believes the corporation can be revived with focused investments. “We are committed to improving the condition of these hotels. With planned upgrades and professional management, HPTDC can regain its lost position in the tourism sector,” he said.
The statement signals a rift within the Congress-led government, as Bali’s remarks come in contradiction to a cabinet decision that has already been cleared.
