The Union Cabinet is likely to consider a proposal moved by the commerce ministry for leasing out 3.7 acres of land at Pragati Maidan to a private player for construction of a hotel, government sources said.
The funds raised by 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.
The land would be monetised on long-term leasehold basis for 99 years for construction and running of a hotel by a third party, they 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.
The total cost of the project is Rs 2,254 crore. The growing Meetings, Incentives, Conferences and Exhibitions (MICE) sector needs this kind of investments in the country.
The redevelopment of Pragati Maidan is envisaged in two phases. Phase-1 redevelopment is expected to complete by May 2019. Redevelopment will also include creation of a convention centre with seating capacity of 7,000 persons.
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.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)