The government on Wednesday approved transfer of 3.7 acresof land at Pragati Maidan here to ITDC and ITPO on a 99-year lease for Rs 611crore to set up a five-star hotel. The decision for monetisation of land atPragati Maidan to build a five-star hotel was taken up at the Union Cabinetmeeting chaired by Prime Minister Narendra Modi.

Giving details, Information and Broadcasting MinisterPrakash Javadekar said India Trade Promotion Organisation (ITPO), which managesthe Pragati Maidan, will undertake a mega project to redevelop the land into aworld-class International Exhibition and Convention Centre.

The approval has been given for "transfer of 3.7 acresof land at Pragati Maidan on a 99-year fixed leasehold basis at a price of Rs611 crore in favour of the special purpose vehicle (SPV), which will be formedby India Tourism Development Corporation (ITDC) and Indian Railway Catering andTourism Corporation (IRCTC) for development and operation of a five-starhotel".

The implementation of the International Exhibition andConvention Centre (IECC) project is in full swing and scheduled to be completedin the year 2020-21, said an official release.

In order to ensure completion of the hotel project in a fasttrack mode, the SPV will take necessary steps including selecting a suitabledeveloper and operator third party through a transparent competitive biddingprocess to construct, run and manage (directly or through a professional brand)the hotel on a long-term fixed lease basis.Throughout the world, a hotelfacility is an integral part of any Meetings, Initiatives, Conferences andExhibitions (MICE) hub/destination, the release said.

"Hotel facility will add value to IECC project andpromote India as a global destination for trade and commerce along withemployment generation," it said.The International Trade Fair which haslakhs of visitors and small traders participating every year will also benefitfrom the transformation of Pragati Maidan, it said.Increased facilities andmodern amenities will greatly benefit the participating traders, entrepreneursand visitors.

This will ensure higher turnout at the trade fair,revitalising it and providing a vibrant platform to expand their businesshorizons and promote Indian goods and services, it added.