The government on Wednesday approved transfer of 3.7 acres of land at Pragati Maidan here to ITDC and ITPO on a 99-year lease for Rs 611 crore to set up a five-star hotel.
The decision for monetisation of land at Pragati Maidan to build a five-star hotel was taken up at the Union Cabinet meeting chaired by Prime Minister Narendra Modi.
Giving details, Information and Broadcasting Minister Prakash Javadekar said India Trade Promotion Organisation (ITPO), which manages the Pragati Maidan, will undertake a mega project to redevelop the land into a world-class International Exhibition and Convention Centre.
The approval has been given for “transfer of 3.7 acres of land at Pragati Maidan on a 99-year fixed leasehold basis at a price of Rs 611 crore in favour of the special purpose vehicle (SPV), which 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 implementation of the International Exhibition and Convention Centre (IECC) project is in full swing and scheduled to be completed in the year 2020-21, said an official release.
In order to ensure completion of the hotel project 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.
Throughout the world, a hotel facility is an integral part of any Meetings, Initiatives, Conferences and Exhibitions (MICE) hub/destination, the release said.
“Hotel facility will add value to IECC project and promote India as a global destination for trade and commerce along with employment generation,” it said.
The International Trade Fair which has lakhs of visitors and small traders participating every year will also benefit from the transformation of Pragati Maidan, it said.
Increased facilities and modern amenities will greatly benefit the participating traders, entrepreneurs and visitors.
This will ensure higher turnout at the trade fair, revitalising it and providing a vibrant platform to expand their business horizons and promote Indian goods and services, it added.