Itdc Draws Flak For Poor Service Quality

The parliamentary standing committee on tourism has termed the performance of the public sector India Tourism Development Corporation (ITDC) as poor and recommended reviewing the working of the corporation.

The report, which was tabled in Parliament early this week, said the main reason for this is obviously the poor quality of the product. The committee said despite a number of prime hotel properties spread through out the country, ITDCs accommodation and catering division could only achieve a turnover of Rs 192.05 crore and a net profit of Rs 44.35 crore.

Even in the monopoly sector of duty free shop business, the corporation mopped up only Rs 27.25 crore profit, it said.

 

Castigating the performance of the hotel division, it said the profit-making hotels are obviously not earning enough when compared with similarly placed private sector hotels.

Despite a request from the committee, the corporation could not provide a break-up of the loss-making hotels.

The report said that information was also awaited on the depreciated value of each ITDC Hotel.

Chairman Anil Bhandari had earlier informed the committee that the ITDC was improving its performance and that the turnover had gone up to Rs 333.8 crore in 1996-97 from Rs 298.05 crore in the previous year.

The net profit went up to Rs 83.3 crore from Rs 71.65 crore in 1995-96, he said, claiming that the corporation was self-sufficient.

Listing out projects proposed to be undertaken by the corporation during the ninth plan, he said these included renovation and refurbishment of hotels like Lodhi, Janpath and Ranjit in New Delhi.