New Delhi: The Union cabinet on Wednesday approved a proposal for leasing out 3.7 acres of land at Pragati Maidan to a private player for construction of a hotel.
The funds raised through the process would be utilised by the India Trade Promotion Organisation (ITPO) to finance the Integrated Exhibition-cum-Convention Centre (IECC) project at Pragati Maidan.
ITPO is a body under the commerce ministry which runs the exhibition centre at Pragati Maidan.
The land would be monetised on long-term leasehold basis for 99 years for construction and running of a hotel by a third party.
"Union cabinet approves monetisation of 3.70 acres of land at Pragati Maidan by ITPO on long term leasehold basis for 99 years for construction and running of a hotel by a third party including private sector through a transparent competitive bidding process," an official statement said.
In January last year, the government approved the proposal of ITPO under the Department of Commerce, for redevelopment of Pragati Maidan by setting up of a world class IECC at Pragati Maidan here at the national capital.
"This measure is part of the Phase I of redevelopment project of Pragati Maidan i.e. IECC project," it added.
A hotel facility is an integral part of any meetings, initiatives, conferences and exhibition (MICE) hub/ destination and a suitable space of land is accordingly proposed by ITPO to be set apart for a five star/budget hotel.
This project would provide an appropriate venue for international events and hotels are an important part for such programmes. Present facilities are far short of international standards.