In a move to modernize its tourism infrastructure, the Maharashtra Tourism Development Corporation (MTDC) has initiated plans to privatize over 30 state-run resorts. The initiative, which will transform popular destinations aims to enhance the tourist experience and attract private investment through the Public-Private Partnership (PPP) model. The first phase of the project involves inviting bids for 30 tourist locations, with additional sites expected to be added later. MTDC's Managing Director, Manojkumar Suryawanshi, confirmed that the development is aligned with Maharashtra’s Tourism Policy 2024. This policy aims to elevate the quality of the state's tourism services and attract a broader audience, including international and affluent domestic tourists.
Enhancing Tourism Infrastructure
Tourism officials have acknowledged that many of MTDC's resorts lag behind competitors in states such as Kerala and Goa. While Maharashtra's Sindhudurg district, declared a tourist area in the 1990s, has beaches comparable to Goa's, it has only recently begun developing five-star hotels. By contrast, Goa has long had 27 such hotels. Two five-star hotels are now under construction in Sindhudurg, and MTDC plans to develop additional resorts with three- to five-star ratings along the Konkan coast, expanding both old properties and constructing new ones under the PPP model.
Political Criticism
The timing of the privatization, just ahead of the upcoming assembly elections, has sparked political controversy. Ambadas Danve, Leader of the Opposition in the Legislative Council and a Shiv Sena (UBT) MLC, questioned the intent behind the decision, accusing the government of favoring private developers. He criticized the transfer of prime tourist destinations, such as those in Ganpatipule, Tarkarli, Shirdi, and Karla, to private hands. Danve also questioned the lucrative incentives being offered to developers, including a 20% capital subsidy, GST refunds, and reductions in stamp duty and electricity tariffs. He suggested that the public deserves a full explanation for what he described as a move to hand over profitable public assets to private players under the guise of development.
Privatization
Tourism Minister Girish Mahajan defended the initiative, stating that the goal is to raise Maharashtra's tourism standards to international levels by developing resorts across three-star, four-star, and five-star categories. Mahajan clarified that while private developers would be involved in managing and developing the properties, MTDC would retain ownership of the land. The corporation would also receive an upfront payment and a 12.5% share in the gross revenue generated by these properties. The minister expressed confidence that the initiative would attract international tourists and affluent domestic travelers, ensuring that MTDC benefits financially from the arrangement while improving the state's visibility as a premium tourism destination.
Allegations of Mismanagement
In a separate matter, Ambadas Danve has urged Governor C.P. Radhakrishnan to investigate alleged financial mismanagement within the Public Works Department (PWD). Danve noted discrepancies between the allocated budget for capital expenditure and the number of approved projects. Although ₹21,148 crore had been allocated, only ₹6,738 crore had been disbursed. Despite this, the PWD had approved projects worth ₹86,000 crore, raising concerns about how these projects were sanctioned given the department's existing liability of ₹16,000 crore.
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