The union cabinet Wednesday approved the transfer of 3.7 acres of land to set up a five-star hotel at Pragati Maidan to ITDC and IRCTC on a 99-year lease for Rs 611 crore. Union Information and Broadcasting Minister Prakash Javadekar said India Trade Promotion Organisation (ITPO), which manages 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 “in favour of the special purpose vehicle (SPV), which will be formed by ITDC and IRCTC”.
A statement by the government said that the International Exhibition and Convention Centre (IECC) project, under construction currently, is expected to be completed in 2020-21.
“We will participate in the SPV. Finer points and modalities are yet to be worked out,” said M P Mall, managing director, IRCTC.
The SPV will now select a developer and a managing party for which bids are expected to open soon. Officials hope the IECC will help increase the scale of the annual India International Trade Fair at Pragati Maidan.