SHIMLA: The Himachal Pradesh High Court’s order to shut down loss-making HPTDC hotels has stirred a storm. The court directed the immediate closure of these properties, sending ripples across the state.
The Sukhu government is exploring options to challenge the High Court’s single-bench verdict.
However, concerns are mounting about the future of these heritage hotels.
Will these prime assets end up in private hands, or will they be revamped to operate professionally?
Critics argue that if managed on professional lines, HPTDC properties like Hotel Peterhoff in Shimla, The Palace Hotel in Chail, Kunzum Hotel in Manali, and The Club House in McLeodganj could become tourism goldmines.
Their heritage value and prime locations are currently underutilized.
HPTDC is bleeding heavily. The corporation is burdened with ₹35 crore in debt and ₹3 crore in unpaid dues. The financial rot is undeniable.
Infosys founder Narayan Murthy’s words echo here—government-run corporations and departments, often led by bureaucrats with no business expertise, stagnate and fail.
Wildflower Hall Controversy
The debate intensified after a January 2024 High Court ruling directed EIH Ltd., part of the Oberoi Group, to surrender possession of Wildflower Hall to the Himachal government. The court dismissed the company’s review petition against its earlier order.
The court emphasized that a review could not serve as an appeal. The Oberoi Group’s attempt to hold on to the iconic property failed, yet questions loom large.
Why reclaim Wildflower Hall with such vigor, only to consider privatizing other properties?
The Wildflower was a joint venture of the state and the EIH ltd. The government had terminated the agreement as they failed to pay the share to the government.
Experts Call for Professional Management
Tourism experts believe professional management could transform these properties into major revenue generators. A revenue-sharing model is being explored. This approach would allow private players to manage operations while the government retains ownership.
The Tarun Shridhar Committee, set up to find a way out, face a daunting task. But the committee has yet to start its exercise as not even single meeting has been held so far. What it will suggest remains a speculation only.
However, past controversies haunt the privatization debate.
Critics point to the Vajpayee government’s sale of state-owned hotels at throwaway prices.
The Centaur Hotel at Mumbai Airport sold for ₹65 crore. A prime property in Delhi went for just ₹92 crore, despite land values running into hundreds of crores.
Similar political backlash derailed former CM Shanta Kumar’s plan to privatize Himachal’s state-run hotels. Slogans like *‘Himachal on Sale’* stopped those efforts.
Will the Sukhu government face the same fate?
The Road Ahead
The stakes are high. HPTDC’s failure to adapt to changing market dynamics has left these properties in a mess.
While political battles over privatization rage on, experts stress the need for transparency and expertise.
The Shridhar Committee’s recommendations will be key.
Will the government choose reform or succumb to political pressures? As of now the government is considering option to challenge the High Court Order.
This would mean an endless legal battle. But then the government need to pull up its socks and fast track the Shridhar committee. The fate of HPTDC hangs in the balance.
