New Delhi, Dec 4 (IANS): A five star hotel will soon come up at Pragati Maidan at a cost of Rs 611 crore, as the Union Cabinet on Wednesday approved monetisation of 3.7 acres of land there for building the hotel.

The India Trade Promotion Organisation (ITPO), which is responsible for managing the premium exhibition site, will now transfer the land on 99-year fixed leasehold for development and operation of the five-star hotel.

The transfer will be made in favour of special purpose vehicle that will be formed by India Tourism Development Corporation (ITDC) and Indian Railway Catering and Tourism Corporation (IRCTC).

"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," an official statement on the decisions in the Cabinet meeting said.

A major redevelopment work is being carried out at Pragati Maidan for the last couple of years which includes construction of a new international exhibition-cum-convention centre (IECC), executive accommodation blocks and a tunnel.