Govt plans budget hotels with pvt firms

The government wants to set up budget hotels in partnership with private sector companies to cater to the mid-market segment. The move follows the government's decision not to disinvest ITDC- run hotels.

"We need hotels to cater to the budget segment. We want the private sector partnership in this effort," Tourism Minister Renuka Chowdhury told Business Standard.

However, it is not certain whether this new initiative will be under ITDC or a new entity will be formed for the purpose. "We are not sure whether ITDC wants to do it. We are looking at the possibilities," she said.

The government is also working on a strategy to develop historical monuments. The steps planned include developing them as prominent destinations as well as roping in private sector companies to maintain them.

The government has also set up an inter ministerial group (IMG) on tourism with Human Resource Development Minister Arjun Singh as its chairman. The IMG has been constituted to look into the steps needed to evolve a comprehensive tourism policy. The government feels that a greater co-ordination is required amongst various ministries for working out various tourism policies.

The other members of the IMG are Chowdhury, Civil Aviation Minister Praful Patel, Railway Minister Lalu Prasad Yadav, Home Minister Shivraj Patel, External Affairs Minister Natwar Singh and Minister for Information and Broadcasting and Culture Jaipal Reddy.

"The first meeting of the IMG will be held in the next few days. This is the first step towards a comprehensive tourism policy that we are looking at. We have been studying the existing tourism policy and will made changes to it if required," Chowdhury said.

The tourism ministry is also looking at ways for a better co-ordination with civil aviation and railway ministries. "Development of tourism in India is linked to the growth of civil aviation and railways and the three departments need to work together in this purpose," she said. According to Chowdhury, the aim of the policy is to help India emerge as a major player in the global tourism scene.