"The Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its 'in principle' approval to transfer the property of Hotel Janpath, New Delhi, to the Ministry of Urban Development," said a statement.
"The property can be considered for construction of government offices and similar purposes which would save government funds spent in hiring of government offices," it added.
The statement mentioned the details of implementation of the project and land usages would be taken subsequently by a Committee of Secretaries to be constituted under the chairmanship of cabinet secretary.
"The building of Hotel Janpath has to undergo major rehabilitation work since the building structure has been found to be unserviceable, in distressed condition and deficit in the context of seismic requirements, according to the inspection report of IIT Roorkee," read the statement.
The government has initiated the process of disinvestment of hotels/properties of the India Tourism Development Corporation Ltd. (ITDC).
In the first stage of the disinvestment process, it was decided to disinvest in three hotels, namely Hotel Lake View Ashok, Bhopal; Hotel Brahmaputra Ashok, Guwahati; and Hotel Bharatpur Ashok, Bharatpur. Hotel Janpath, New Delhi, was next on the list.