The Puri chariot festival, a major tourist attraction

Bhubaneswar, Sept. 14: With an eye on modernisation, the Orissa government has decided to sell its 76 per cent stake in the Orissa Tourism Development Corporation (OTDC) to private parties.

Consequently, 22 OTDC-run tourist bungalows (Panthanivas) located in prime places like Bhubaneswar, Puri, Rourkela, Paradip, Gopalapur-on-Sea, Taptapani and Konark will be privatised for upgradation.

At a high-level meeting attended by urban development and public enterprises minister K.V. Singhdeo and tourism minister Surya Narayan Patro yesterday, the government decided that the public sector unit incorporated in 1979 will be divested to bring in more funds for modernisation of the tourist bungalows.

The government has so far invested Rs 10 crore in the corporation, whose accumulated losses ran up to Rs 6.4 crore by the end of the last fiscal. This, despite a net profit of Rs 37.56 lakh last year.

Running the show for years were people good only at pleasing the powers-that-be. They made it a point to lavish the tourism minister of the day with free food and beverage after a mere telephone call and without making a proper bill or asking for payment.

Now, as Singhdeo points out, the government is not in a position to manage the corporation any longer.

Patro said the government will invite expressions of interest from consultancy firms for valuation of the OTDC properties. After that, tenders will be floated for divestment of the bungalows.

Since the government is financially stressed, private investors and established hospitality groups will be allowed to modernise the OTDC hotels. The 22 hotels with 435 rooms, including 128 with air-conditioning, had an occupancy rate of 46 per cent in the last financial year. Although the hotels can achieve break-even with 43 per cent occupancy, the hotels were running on losses till last year.

What is ailing the OTDC bungalows is the purposelessness that has engulfed the corporation. After the managing director?s tenure became uncertain, swift decisions could not be taken. Officials of the rudderless corporation said they were helpless because there was no boss around willing to take responsibilities.

Almost 460 employees of OTDC will be given VRS once the plans materialise. Private parties will take over the tourist centres and decide on the fate of the remaining employees.