Financial Daily from THE HINDU group of publications
Wednesday, Feb 19, 2003
Financial Daily from THE HINDU group of publications Wednesday, Feb 19, 2003 |
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Corporate
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Manpower Centaur board meet may finalise VRS Ashwini Phadnis
NEW DELHI, Feb. 18 THE board of the Air India subsidiary, Hotel Corporation of India (HCI), is to meet in Delhi on Friday to discuss a slew of measures to turn around the state-owned hospitality major. During the meeting, a proposal to offer voluntary retirement scheme (VRS) to the staff at Centaur Hotel Delhi and the flight kitchens in Delhi and Mumbai are likely to be discussed. Besides, issues relating to renovation of 100 more rooms at the Centaur airport hotel in Delhi and upgradation of the flight kitchens in Delhi and Mumbai are also likely to be taken up. Official sources told Business Line that HCI will incur an expenditure of around Rs 29 crore - about Rs 20 crore for the 512 employees agreeing to the VRS scheme in Delhi and around Rs 9 crore for the 177 staff accepting it in Mumbai. The VRS is likely to be funded from the sales proceeds garnered from divestment of Government equity in two Centaur Hotels in Mumbai. The hotel chain will be in a position to offer the VRS scheme to its employees within a month of getting board approval, officials said. The board permission for renovation and upgradation of flight kitchen is being sought so that HCI can scout for new business prospects. The exercise is likely to result in an expenditure of around Rs 7 crore. At present, the 376-room Delhi Centaur has around 94 rooms, which can be compared to international standards. The Hotel had recently spent about Rs 500,000 to upgrade a few more rooms. However, official sources argue that this level of expenditure was warranted as it would help the chain generate business at least Rs 10-12 crore of additional revenue during the first full year of operations. Centaur used to run five hotels including two in Mumbai and one each in Delhi, Srinagar and Rajgir (Bihar). However, as part of the divestment plans of the Government, the two hotels in Mumbai and lone hotel in Rajgir were sold.
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