Jharkhand govt begins take over of Ranchi’s Hotel Ashok

RANCHI: The Jharkhand government on Tuesday afternoon initiated the process for a complete takeover of Ranchi’s Ashoka Hotel as the Jharkhand Tourism Development Corporation (JTDC) signed a memorandum of understanding with central PSU India Tourism Development Corporation (ITDC) for purchasing the latter’s 51% shareholdings in the premium property.
Soon after JTDC and ITDC officials signed the MoU for ownership transfer, chief minister Hemant Soren said, “Very soon, Hotel Ashok will be developed into one of Jharkhand’s premier properties for tourists.” The hotel, built on a 2.7-acre plot in Ranchi’s Doranda locality, was opened under a joint venture of the then Bihar government and ITDC under Ranchi Ashoka Bihar Hotel Corporation Limited (RABHL), a company formed in 1983.While ITDC had 51% stake in the hotel, the Bihar government held control over the remaining.
The stakes were split in three after 2000 when Jharkhand was carved out of Bihar. While ITDC held its share, the Jharkhand government was handed 12.5% share of Bihar’s stake. The hotel, Ranchi’s finest, went under lock and key in 2018 as RABHL grappled with mounting liabilities, which stood a little over Rs 4 crore in early 2020.
The hotel had 24 permanent employees in 2018. Before gradually losing its sheen and glory in last few years, the property, which consists 30 rooms and two banquet halls, hosted VIP guests such former PM Atal Bihari Vajpayee, Lal Krishna Advani, Lalu Prasad and prominent celebrities and actors. It was also the scene of gathering of many political rumblings during the tenure of former CMs Babulal Marandi, Arjun Munda and Madhu Koda.
While JTDC began the purchase of ITDC’s 25,000 shares which are pegged at Rs 6 crore currently, it will also pay the RABHL’s outstanding liabilities. The plot’s ownership will remain with JTDC. “Talks are underway with Bihar government as we gear up to purchase their share. Jharkhand has ample scope in tourism sector, but little has been done in the past 20 years to boost its tourism infrastructure,” Soren said.