McDonald's tops Shimla bidding

Bidding for restaurant, bar on June 27

McDonald's so far has made the highest bid amongst many private companies that have applied for taking over the imposing Ashiana and Goofa Bar restaurants, located downtown Shimla, and are run by the Himachal Pradesh Tourism Corporation (HPTDC), according to official sources.

Business Standard reported in December McDonald's was interested in Ashiana and the Taj group in the Palace Hotel.

"Tenders have already been invited to lease out the Ashiana and Goofa restaurants and bars, and the bidding will take place on June 27," said Sohan Lal, Shimla mayor.

The property is owned by the Shimla Municipal Corporation, which is trying to oust the HPDTC from the premises because the latter is paying only Rs 19,000 per month.

The premises are with the HPTDC for the last 30 years.

After a case of public interest litigation was filed in a court here against the occupation of the restaurant by the state-run tourism company (HPTDC), the court ordered the Shimla Municipal Corporation to lease out the building by June 27.

Official sources said McDonald's was the highest bidder so far with Rs 400,000 per month.

"We feel the Ashiana restaurant can generate up to Rs 20 lakh profit if leased out to a private party, which is far more than Rs 400,000 profit it is currently making," Tourism Minister G S Bali said in December.

"The Palace hotel is currently registering an annual profit of Rs 50 lakh but it has the potential to generate Rs 1.5 crore for the government,"Bali said. More bids are likely before the decision is arrived at later this month, officials say.

The Ashiana & Goofa restaurants and bars are housed in a heritage building with unique conical slated roof and is a favourite haunt of tourists and locals in this resort town. Bali has repeatedly said not only would the loss-making HPTDC properties be privatised but the profit-making ones too, if they did not meet their targets.