The Union Cabinet on Wednesday approved monetisation of 3.7 acres of land at the capital's centrally located Pragati Maidan at the cost of Rs 611 crore for building a five-star hotel.
The India Trade Promotion Organisation (ITPO) will transfer the land on a 99 year fixed leasehold basis in favour of special purpose vehicle that will be formed by India Tourism Development Corporation (ITDC) and Indian Railway Catering and Tourism Corporation (IRCTC) for development and operation of a five-star hotel.
The hotel facility will add value to the International Exhibition and Convention Centre (IECC) project, which envisages the promotion of India's trade and commerce along with employment generation. IECC is expected to be completed by 2021.
“In order to ensure completion of the hotel project at Pragati Maidan in a fast track mode, the SPV will take necessary steps including selecting a suitable developer and operator third party through a transparent competitive bidding process to construct, run and manage (directly or through a professional brand) the hotel on a long-term fixed lease basis,” an official statement said after the cabinet meeting chaired by Prime Minister Narendra Modi.
ITPO, which manages Pragati Maidan, is implementing its mega project of redevelopment of Pragati Maidan into world-class IECC. Throughout the World, a hotel facility is an integral part of any meetings, initiatives, conferences and exhibitions, it said.
The International Trade Fair, which witnesses lakhs of visitors and small traders participating every year, is also expected to benefit from the transformation of Pragati Maidan. The government expects higher turnout at trade fair after the modernisation plan is undertaken.
