Tourism department’s hotel projects put on hold

The PPP project was initiated in August 2008 because several properties were running in losses and were mostly defunct. At the moment,the department has 45 operational units,including Hotel Gomti and Nadiya Kinare Restaurant in Lucknow,and 31 non-functional units. To attract investors,the department decided to offer loss-making units in bundle with the profit-making ones.

The first bids were invited in December 2008,but were cancelled within a month in the face of opposition from employees.

The second bids were invited in February 2009,but this time around the buyers wanted a change in the bundling scheme. Twice the bundles were redesigned and finally bids were invited in November 2009.

In the first phase,the department offered 14 properties. It received bids for 9 — one each in Lucknow,Varanasi,Hindon and Meerut,three in Mathura and two in Moradabad. The bids were valid till May 2010,but so far,nothing has happened. An official of the department said: “The bidders refused to agree on the extension of the validity. On Saturday,the bids were finally cancelled,closing the chapter as of now.”

“We are utilising the time for some important tasks related to these units. These include getting the land transferred in the name of these units. We are also preparing our units for the rush during the Games,” said Secretary (Tourism) Avanish Awasthi.