Jharkhand Government on Tuesday signed an MoU with Indian Tourism Development Corporation (ITDC) as a part to takeover Ranchi based Hotel Ashok, an iconic hotel spread over 2.7 acres of land at Doranda in the city capital.

Chief Minister Hemant Soren signed MoU whereas ITDC was represented by Piyush Tiwari, chairman of Ranchi Ashoka Hotel as well as Director (Commercial and marketing) of ITDC.

After the agreement was signed all 25000 shares of the hotel owned by ITDC were transferred to Jharkhand government. The property having 30 rooms, two banquet halls and lawns had three stakeholders, namely, ITDC (51 per cent), Jharkhand (12.5) and Bihar the rest. Originally, Bihar owned 49 per cent stake. But after Jharkhand was formed in 2000, the stakes were split among Bihar, Jharkhand and ITDC following an inter-ministerial meeting held under the chairmanship of principal secretary to the Prime Minister in 2004.

Secretary of tourism department Puja Singhal said that in the next phase Jharkhand government will sign an MoU with Bihar government to purchase rest of the shares that will complete the process of transfer of ownership of this hotel.

She said that the Jharkhand government will bear the burden of ITDC.

The Central Government last year started the divestment process of Hotel Ashok, which stopped operating in March 2018 after it became a loss making unit.

Even 24 employees of the hotel were not getting their salary after the hotel was closed. 

In 1983 Ranchi Ashoka Bihar Hotel Corporation Limited was formed to run the hotel as a joint venture of the Bihar government and ITDC. In 1987 land was acquired and within one year this hotel was built.

About three years back discussion started over disinvestment of this hotel.

A crucial meeting was held under the chairmanship of the principal adviser of the PM on September 26, last year.

The then chief secretary of Jharkhand Sudhir Tripathi too had held a meeting where it was decided that senior officials will be deputed to the ITDC office to sort out issues related to valuation of equity.

The process of transfer of ownership was expedited by the Hemant Soren government who took personal interest in this matter.

“It took us almost 20 years to take possession of this hotel which was built on our land.  But we have done this. The Jharkhand government will give a new face and recognition to this hotel. Jharkhand is blessed with nature’s beauty besides mines and minerals. There is a huge scope for tourism,” the Chief minister said in his brief address.