• October 11, 2024

Himachal Pradesh High Court Flags Alarming State of HPTDC, Urges Partnership with Private Sector for Revival

Himachal

The Himachal Pradesh High Court has expressed serious concerns about the deteriorating state of the Himachal Pradesh Tourism Development Corporation (HPTDC), calling the situation “shocking” after reviewing an affidavit submitted by the corporation’s Managing Director. This development came to light during a hearing of a petition filed by a former HPTDC employee who claimed that the corporation had failed to pay his retirement benefits.

Justice Ajay Mohan Goel noted that delays in post-retirement benefit payments were widespread, with the total dues owed to retired employees standing at over Rs 35 crore as of August 31, 2024.

The court criticized the management of HPTDC’s properties, many of which are located in prime tourist areas but are underperforming. While tourism in the state remains robust, tourists are choosing to stay in non-HPTDC hotels and dine at restaurants not owned by the corporation, despite the corporation’s prime locations.

In light of this, the court suggested that if HPTDC is unable to manage these properties effectively, it should explore partnerships with private businesses or expert bodies. The court clarified that this does not mean handing over the properties to private entities but exploring collaborative ventures to turn them into profitable assets.

Justice Goel emphasized that unless action is taken to improve the corporation’s performance, the court may consider ordering the closure of these properties, as they are becoming a burden on the state exchequer.

The court has directed the Principal Secretary (Tourism) and the Managing Director of HPTDC to submit separate affidavits addressing the court’s concerns, with the aim of finding ways to transform these “white elephants” into profit-generating units.

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