Maharashtra Privatizes Tourist Destinations, sparking Controversy

In a move aimed at revolutionizing the tourist experience across Maharashtra, the Maharashtra Tourism Development Corporation (MTDC) has announced plans to privatize over 30 of its properties. This bold decision, implemented under the Public Private Partnership (PPP) model, is expected to bring significant upgrades to the state-run resorts and provide substantial opportunities for private developers to enter the tourism sector. The first phase of this privatization initiative includes well-known tourist destinations like Ganpatipule, Tarkarli, Shirdi, Karla, Alibag, Matheran, and Tadoba. These popular tourist spots are poised to receive a major boost in facilities and infrastructure.

Manojkumar Suryawanshi, Managing Director of MTDC, highlighted the significance of this initiative, stating, “We have invited bids for 30 tourist destinations in the first phase. More sites will be added as we move forward. This initiative aligns with the 2024 Tourism Policy of Maharashtra, focusing on improving the tourism landscape in the state.”

Tourism department officials acknowledge that MTDC resorts have struggled to compete with the high-quality offerings of other states like Kerala and Goa. One official emphasized the potential for Sindhudurg, a district famed for its stunning beaches, but lacking in luxury accommodations. “Sindhudurg was declared a tourist district in the 1990s, but it lacked starred hotels for many years. Now, two five-star hotels are under construction, while Goa already has 27 five-star hotels,” the official said. Under the new PPP model, MTDC aims to upgrade existing resorts and build new ones, particularly in the Konkan region, focusing on three- to five-star accommodations.

While the privatization move holds promise for tourism development, it has also attracted significant political criticism. Ambadas Danve, Shiv Sena (UBT) MLC and Leader of the Opposition in the Legislative Council, has questioned the timing of the decision, which comes just ahead of the state’s assembly elections. He accused the government of favoring private developers over public interest. Danve voiced his concerns on World Tourism Day, questioning, “Why is MTDC privatizing profit-making resorts at prime destinations like Ganpatipule, Tarkarli, Shirdi, and Karla? This appears to be a ploy to hand over valuable state lands to private players.” He also criticized the incentives being offered to developers, including a 20 per cent capital subsidy, GST refunds, Stamp Duty concessions, and electricity tariff reductions.

Tourism Minister Girish Mahajan defended the move, explaining that it aims to attract international and high-end domestic tourists. “We are developing MTDC resorts in three categories—three-star, four-star, and five-star properties—to cater to affluent tourists. The land will remain owned by MTDC, and in addition to an upfront payment, we will receive a 12.5 per cent share of the gross revenue from these properties,” Mahajan stated.

In a related development, Ambadas Danve has also called for an investigation into the Public Works Department (PWD), alleging large-scale financial mismanagement. Danve claimed that while ₹21,148 crore has been allocated for capital expenditure in the budget, the PWD has approved projects worth ₹86,000 crore, despite existing liabilities of ₹16,000 crore. He has urged Governor C P Radhakrishnan to investigate the matter.

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