Press Information Bureau

Government of India

Ministry of Tourism

25-October-2012 17:37 IST

Union Tourism Minister Shri Subodh Kant Sahai has asked India Tourism Development Corporation (ITDC), the public sector undertaking under the aegis of the Ministry of Tourism to explore the possibilities of setting up Budget hotels in the country for the benefit of common tourists. He was speaking after receiving a divided cheque of Rs. 3.95 crore for the financial year 2011-12 from Dr. Lalit K. Panwar, Vice Chairman & Managing Director, ITDC here today. Shri Sahai said ITDC is a brand ambassador of India Tourism and has to show its worth. The Minister appreciated the performance of the company and wished it more success in the years to come.

The turnover of the Corporation increased from Rs. 392.36 crore to Rs. 423.06 crore registering an increase of 7.82% in 2011-12. The Corporation has earned a profit of Rs. 22.02 crore (before tax) for this financial year against a loss of Rs. 11.73 crore during 2010-11 and a loss of Rs. 20.51 during 2009-10. The Corporation, besides showing improvement in the turnover and profitability, also showed a significant improvement in the operational mduring the year

In the 47th Annual General Meeting of the Corporation, the Dividend at the rate of 5% (that is Rs 4.28 crore) was approved. The Corporation could not distribute Dividend to its shareholders during the past two years due to operational losses during 2009-10 and 2010-11. As during the year 2011-12, there has been a profit; a Dividend of RS 3.95 crore is being paid to the Ministry of Tourism and Rs 0.33 crore for distribution to other shareholders of the Corporation.

ITDC was incorporated in 1966 with a mandate to develop and expand tourism infrastructure in the country. Today, the Corporation offers a bouquet of services with its business activities ranging from Hotel Accommodation, Catering, Transport, Travel Agency, Consultancy, Manpower Training, Event Management to allied activities such as execution of tourism and engineering projects, promotion of tourism via Sound & Light Shows amongst others.

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Samir/suman

 

Dividend distribution resumed after corporate profitability restored, prompting government payout and a push for budget hotel expansion. ITDC, a public sector tourism infrastructure developer, resumed dividend distribution after returning to profitability in 2011-12; the AGM approved a 5% dividend, with the Government receiving its share and minority shareholders the remainder. The Ministry of Tourism instructed ITDC to explore budget hotel development to expand affordable accommodation, linking the administrative directive to the company's operational recovery and diversified service portfolio.