New Delhi, Jun 13 (IANS): At its meeting on Wednesday, the Union Cabinet is likely to consider among other things a proposal to lease out 3.7 acres of land at Pragati Maidan to private players for building a five star hotel, informed sources said.

The proposal, mooted by the Commerce Ministry, is part of the holistic plan to redevelop Paragati Maidan into a world class amenity for holding exhibitions and conventions.

The funds raised by leasing out the land for 99 years would be used by the India Trade Promotion Organisation (ITPO) to finance the Integrated Exhibition-cum-Convention Centre (IECC) project at Pragati Maidan.

The Rs 2,254 crore project was cleared by the government last year.

The redevelopment, planned to be completed in two phases, will also include creation of a convention centre with a seating capacity of 7,000 persons. The first phase is expected to be completed by May next year.

The sources said the project was envisaged to provide a world class venue for international events and a star hotel needed to be there to complement the overall facilities.