RINL-VSP put its `beautiful guest houses’ on long-term lease to tide over financial crisis

RINL-VSP in Visakhapatnam auctions non-core assets, invites EoI for long lease of Ukku House and Gangavaram Guest House.

After completing the process of auctioning its non-core assets such as vacant lands, Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant (RINL-VSP), under the Union Ministry of Steel, is now keeping two more key assets for long lease to overcome its financial crisis.

It has also invited Expression of Interest (EoI) from interested entrepreneurs to submit their proposals by April 15.

As per internal decisions taken by RINL-VSP management after prior consultations with the Ministry, the company is said to have decided to lease out its prominent guest houses — Ukku House and Gangavaram Guest House— through open auction on long term lease (approximately 30 years) for operation and maintenance.

The Ukku House is spread over five acres of land with 116 rooms, banquet halls, restaurant and kitchen. It is located near to Andhra MedTech Zone, Pharma companies, major government industries like NTPC Simhadri. Its nearest beaches are Appikonda, Yarada and NTPC Beach. It is 10 km from Visakhapatnam Airport and 20 km from Visakhapatnam Railway Station. Its nearest railway station is Duvvada (6 km).

Gangavaram Guest House is located on Gangavaram beach and next to Adani Gangavaram Port with lush gardens, panoramic views of the Bay of Bengal and the mountains.

“Yes, we have invited EoI for lease of the two guest houses. The objective of the EoI is to monetise the guest houses to generate immediate and future cash flows. RINL is looking for an agency or hotel operator who will be a potential partner for the Operation and Maintenance for maximum 30 years,” a RINL-VSP official told The Hindu.

When contacted, CITU honorary president J. Ayodhya Ram said, “It is an anti-worker decision of the Centre and RINL management. We condemn this proposal. We will fight against it. The government will give an opportunity to anti-nationals by leasing out the guest houses, which are located near to Eastern Naval Command and other key central government institutions.”