The government is debating whether to let Hotel Corporation of India (HCI) remain a wholly-owned subsidiary of Air India after privatisation of the national carrier or to wind it up after selling off its hotels individually.
There might be tax complications if HCI is not wound up, a senior government official told Business Standard today, refusing to elaborate.
It has been decided that the Centaur hotels at Mumbai and Srinagar will not be sold. While the Mumbai property will be leased out to private bidders, Centaur Srinagar will not be privatised.
The Mumbai hotel, owned by Airports Authority of India (AAI) and being run by HCI on a 30-year lease, cannot be sold as the government does not have a title deed to it.
The Srinagar property will be handed over to the Jammu and Kashmir government.
