New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday (December 4) approved monetisation of 3.7 acres of land for building a five-star hotel worth Rs 611 crore at Pragati Maidan. The India Trade Promotion Organisation (ITPO), which is responsible for managing the premium exhibition site, will transfer the land on a 99-year fixed leasehold for development and operation of the five-star hotel, according to a government statement on Cabinet meeting.
The land will be transferred in favour of special purpose vehicle (SPV) that will be formed by India Tourism Development Corporation (ITDC) and Indian Railway Catering and Tourism Corporation (IRCTC).
The official statement said, "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."
Notably, the implementation of the International Exhibition and Convention Centre (IECC) project is in full swing and is scheduled to be completed in the year 2020-21.
"In line with the vision of the government to revolutionise India’s infrastructure and tourism with the best of standards and service, ITPO 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 (MICE) hub/destination," the statement said.
It further said that the hotel facility is an integral part of the IECC project which will promote India as a global Meetings, Initiatives, Conferences, and Exhibitions (MICE) hub and promote trade and commerce along with employment generation. The hotel will add value to the IECC project and will benefit the Indian trade and industry.
"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," the statement added.