The central government has agreed to transfer Hotel Jaipur Ashok at Jaipur and Lalitha Mahal Palace Hotel at Mysore of India Tourism Development Corporation Ltd (ITDC) to Rajasthan and Karnataka governments, respectively and disinvest ITDC shares in Donyi Polo Ashok Hotel Corporation.

The cabinet committee was of the view that the government should not run and manage hotels on professional lines. It has been decided to lease/sub-lease ITDC hotels jointly with the state governments. The states which have not agreed to lease/sub-lease the properties may be returned back to the states at their officially valued price.

The ministry of tourism will also have to transfer properties of Hotel Lake View Ashok, Bhopal, Hotel Brahmaputra Ashok, Guwahati, Hotel Bharatpur Ashok, Bharatpur to the concerned states. The cabinet has also given in principal approval to transfer Hotel Janpath, New Delhi to ministry of urban development.

The cabinet committee on economic affairs has decided to divest further by way of transfer of properties of Hotel Jaipur Ashok, Jaipur and Hotel Lalitha Mahal Palace, Mysore, units of ITDC to Rajasthan and Karnataka governments, respectively.

ITDC would disinvest its 51 percent equity shares in Donyi Polo Ashok Hotel Corporation Ltd, the joint venture company running Hotel Donyi Polo Ashok, Itanagar in favour of the Arunachal Pradesh government.