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This is an archive article published on September 24, 2004

Govt hunts for full-time ITDC chief

Tourism Secretary Uma Pillai has written to the Cabinet Secretary for a full-time CMD for the Indian Tourism Development Corporation (ITDC)....

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Tourism Secretary Uma Pillai has written to the Cabinet Secretary for a full-time CMD for the Indian Tourism Development Corporation (ITDC).

The request confirms the UPA Government’s resolve to rejuvenate ITDC despite several attempts to privatise it. The Cabinet Secretary received the request a fortnight ago. Presently, Amitabh Kant, the Tourism Ministry Joint Secretary, holds additional charge as the ITDC CMD.

The autonomous public sector organisation has come under fire on several occasions. Right now, there are three senior ITDC officials who are being investigated by the Central Vigilance Commission (CVC), after it received complaints. They belong to key departments of the organisation — from engineering to duty free to the body itself.

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Kant took over in December 2002, after the controversial CMD Ashwini Lohani was summarily removed from the post within a year and a half of taking over, in July 2001. Though Lohani was appointed for three years, he left under a cloud of intrigue, with accusations flying thick and fast that he had fallen foul of the pro-disinvestment lobby of the erstwhile NDA Government. Lohani had fiercely resisted disinvestment.

The ITDC, which also looks after catering, event management, duty-free shops at airports, travel and tours, almost faced near-extinction some time ago, when the now defunct Disinvestment Ministry recommended its closure. Over the last few years, ITDC was trimmed down by selling several of its loss-making properties and ventures. The organisation, which once ran over 30 hotels all over the country, now has 22 hotels.

The UPA Government has declared it will not divest any further stake in ITDC and Tourism Minister Renuka Chowdhury even declared she was going to pump in more funds to refurbish the organisation and its properties.

While her plans are yet to be approved by the Finance Ministry and Planning Commission, it is clear the hunt for a full-time CMD reveals the UPA’s plans to stall the ITDC privatisation process.

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Sources say the hunt for a CMD will take time — the Cabinet Secretary will ask the Ministry of Personnel to look for candidates, who will be empanelled by the Appointments Committee of the Cabinet.

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