Admn revives push to privatise Citco hotels

Chandigarh: The Chandigarh administration has revived plans to privatise, or hand over management of the flagship hotels run by the Chandigarh Industrial and Tourism Development Corporation (Citco), elevating the long-pending proposal to a top administrative priority.This push follows renewed high-level directives, including from Punjab governor and UT administrator Gulab Chand Kataria, to explore private sector involvement as Citco grapples with competitive pressures, stagnation and profitability challenges in prime-location properties.
A senior UT official, speaking on condition of anonymity, confirmed that high-level discussions, including at the Governor's level, focus on handing over hotel operations to private players.In a related development, UT chief secretary H Rajesh Prasad recently assumed the role of Citco chairman, overseeing key decisions amid the renewed push.Several technical and legal hurdles are being examined. These include complexities surrounding land ownership — for example, Hotel Mountview operates on land held under a 99-year lease from the estate office — and challenges related to the transfer or absorption of existing employees.A core question under review is whether to privatise Citco as a full entity or to limit the process to its hospitality assets alone. Citco manages not only prominent hotels such as Mountview, Shivalikview, and Parkview, but also petrol pumps, various other hospitality units, and even canteens at the UT Secretariat, all staffed by its personnel.Officials stressed that these broader operational aspects must be resolved before moving forward.Multiple privatisation models are being evaluated, ranging from outright sale of the units to concessions where private operators manage and run the properties. Earlier, discussions in 2019 explored full privatisation, partial privatisation, or a public-private partnership (PPP) model specifically for flagship hotels. Those plans stalled following the Covid pandemic but were resuscitated.Critics have long questioned Citco's capacity to efficiently operate high-end hotels in prime city locations while competing against established national and international chains now present in Chandigarh. Notably, Citco introduced its central reservation system (CRS) and online booking facility last year, highlighting ongoing efforts to modernise amid competitive pressures.This would not mark the first instance of private sector involvement in Citco properties. Several smaller outlets were previously leased out, including the Drop-In in Sector 34, Baithak Restaurant and banquet facilities at Kalagram, the Magic Wok Chinese restaurant at Hotel Mountview, and the Health Club at Mountview, with varying degrees of success.The UT administration's most significant past privatisation effort involved the electricity department, which, after prolonged litigation, was ultimately transferred to a private entity.As deliberations continued, the outcome could reshape tourism and hospitality infrastructure in the city, potentially improving efficiency but raising concerns over employment and public asset management. No final decisions or timelines were announced.