Himachal Pradesh to Shut Down 18 State-Run Hotels Amid Debt Woes
Facing a severe debt crisis, the Himachal Pradesh High Court has ordered the closure of 18 state-owned hotels operated by the Himachal Pradesh Tourism Development Corporation (HPTDC). The court described these properties as “white elephants” draining public resources.
Key Details:
- The hotels, located in prime tourist destinations such as Dharamshala, Manali, and Dalhousie, have been identified as loss-making ventures.
- Earlier this week, the court also ordered the attachment of Himachal Bhavan, the state’s guest house in New Delhi.
- The judgment was delivered after the state cited financial constraints while defending its inability to meet employee benefit obligations.
Government Response:
Chief Minister Sukhvinder Singh Sukhu announced plans to challenge the decision in the Supreme Court. However, the government has yet to outline a comprehensive plan to manage its debt and financial obligations.
State Advocate General Anup Kumar Rattan downplayed the ruling, calling it a “routine” order. He acknowledged that the discussion around auctioning Himachal Bhavan made it noteworthy.
Revenue Minister Jagat Singh Negi suggested that alternatives could be explored to make the loss-making properties viable, as they occupy prime locations.
Hotels Ordered to Shut Down:
The properties include prominent names such as:
- The Palace Hotel, Chail
- Hotel Bhagsu, McLeodganj
- Hotel Log Huts, Manali
- Hotel Geetanjali, Dalhousie
- Hotel Dhauladhar, Dharamshala
Court’s Justification:
The court emphasized the need to shut these hotels to prevent the continued waste of public resources. Judge Ajay Mohan Goyal held the HPTDC Managing Director personally accountable for implementing the order.
Political Backdrop:
The ruling sparked discussions about long-standing financial mismanagement in the tourism sector. Revenue Minister Negi linked the issue to decisions made during the BJP regime in 2009, highlighting the challenges inherited by the current Congress-led administration.
