New Delhi, May 24 (PTI) The Cabinet today approved the closure of ITDC’s Janpath hotel in the national capital and the property will now be used for setting up government offices. Also Read - What to See and do When in Bharatpur

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, today gave ‘in-principle’ approval for the transfer of property of Hotel Janpath to the Ministry of Urban Development. Also Read - With 3-month Extension in Tenure, Pradeep Kumar Sinha Becomes India's Longest-serving Cabinet Secretary

“Hotel Janpath is located in a prime central location of the city. The property can be considered for construction of government offices and similar purposes which would save government funds spent in hiring of government offices,” an official statement said. Also Read - Rajasthan: 29.65 Per Cent Voter Turnout For 12 LS Seats Recorded Till 11 AM

The decision to close down Hotel Janpath was taken by the government within a month of deciding to exit three ITDC hotels at Bhopal, Guwahati and Bharatpur.

The Committee of Secretaries, under the Cabinet Secretary, will take a decision on details of implementation of the project and land use.

“The building of Hotel Janpath has to undergo major rehabilitation work since the building structure of Hotel Janpath has been found to be unserviceable, in distressed condition and deficit in the context of seismic requirements, according to the inspection report of IIT Roorkee,” the statement said.

The government has initiated the process of disinvestment of hotels/properties of the India Tourism Development Corporation (ITDC) as it feels that running and managing hotels on professional lines is not the work of the Government or its entities.

As part of the disinvestment policy, it has been decided to lease/sub-lease the hotels/properties jointly with the states concerned or return the properties to them, after fair valuation.

States would then have the option to upgrade and operate the Motels by involving the private sector or to utilise the properties as per their requirements.

In the first stage, it was decided to disinvest three hotels — Hotel Lake View Ashok, Bhopal, Hotel Brahmaputra Ashok, Guwahati and Hotel Bharatpur Ashok.

Closure of Hotel Janpath, New Delhi, was decided today.

Shares of ITDC closed at Rs 516.80, down 6.69 per cent, on BSE.

This is published unedited from the PTI feed.