Tirupati temple mulling sale of devotee donated assets to tide over COVID-19 caused funds crunch

The Tirupati temple authorities are considering liquidation of assets like land parcels and buildings donated by devotees to Lord Venkateswara to tide over the COVID-19 caused the financial crisis and help provide salaries of its about 22,000 personnel – if the temple does not reopen by June.

Though the value of the temple’s land tracts, edifices like cottages and other properties lying unused across the country, including cities like Chennai, Mumbai, is estimated to be several thousands of crore rupees, sources say, the estate identification for the present purpose is about Rs 500 crore worth.

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The famed Venkateswara temple has remained closed for pilgrims since 20 March because of the COVID-19 lockdown situation. Though the daily rituals inside are conducted, as usual, the public shutdown has severely affected the richest Hindu temple’s main income source – hundi donations.

Rs 1351 crore is the proceeds the Tirumala Tirupati Devasthanams expected in 2020-21 from the pilgrim offerings to the almighty, dropped into a vessel inside the temple – averaging to over Rs 3.5 crore daily.

Income from laddu sales, special darshan and arjitha Seva tickets, accommodation etc., receipts accounting for over Rs 900 crore annually is also hit.

At the same time, TTD has to pay about Rs 115 crore every month in salaries and pensions. TTD’s 22,000 workforce includes regular, contract-based and outsourced employees. The over 7000 regular employees are getting half salaries since March.

Various maintenance costs are in addition.

The temple has about Rs 14,000 crore bank fixed deposits, which earns Rs 706 crore interest this fiscal. It also has a gold reserve of eight-tonne. However, touching these two assets of sentimental value is not an option yet, officials say.

Speaking to DH, TTD board chairman YV Subba Reddy expressed confidence that such a situation would not arise as the temple possibly would reopen within a month, “with God’s grace.”

“As such, there is no crisis at present, but the fact is like everywhere else we are also facing financial issues since our main revenue from Hundi donations, laddu sales, special darshan etc., – over Rs 200 crore per month – has stopped. However, we paid March, April salaries and made provision for May payments. We will try to manage June too without touching the corpus, deposits or gold,” Reddy said.

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“(In an unlikely situation of the temple remains closed for some more time,) we are exploring various revenue-generating options like liquidating some of TTD’s assets. We have a lot of valuable properties outside Tirupati lying unused – lands, choultries in even cities like Chennai and Mumbai, which were offered by the devotees. We are identifying them to help us in such times,” the chairman said.

A decision is expected in the TTD board meeting on 28 May.

TTD’s budget this year mentions a monetization fund from unviable properties and vacant cottages, expecting Rs 100 crore. Officials say this income head could widen distinctly with auctioning more properties to ease the COVID-19 generated crisis.

TTD’s 2020-21 budget is Rs 3310 crore against previous fiscal’s Rs 3243 crore. A thinner pilgrim footfall anticipated this year, thereby a lower income, officials say, could force a rethink on several projects.