India's NTO Takes Giant Steps Forward With Equity Tie-Ups

Visitors from ASEAN will stand to benefit from a host of new initiatives spearheaded by the India Tourism Development Corporation (ITDC), as it aims to bolster tourism infrastructure, attract more hotel investment, strengthen product development and train up human resources needed. Revealing that plans would only be formally announced this month, ITDC chairman and managing director Dr Lalit K Panwar said the Indian NTO would set up a joint venture company called Ashok Infra, in collaboration with Infrastructure Leasing & Financial Services. Explaining that India’s tourism infrastructure was still underdeveloped in comparison to ASEAN countries, Panwar said the new company would be in charge of road expansions, beachfront facilities, places of interest and more. Funded by the Ministry of Tourism, state governments would also be active participants. In another first, ITDC will enter into three-way equity ventures with state governments and hospitality companies to develop hotels. Having owned and ran its hotels independently with limited success, the NTO now wants states to identify suitable land sites and provide them at low prices to invite private investment. Said Panwar: “We want professional hospitality companies to run these hotels profitably.”