The union government had approved in December 2019 a project to transfer of 3.7 acres of land at Pragati Maidan on a 99-year lease for ₹611 crore for a five-star hotel
, Hindustan Times, New DelhiParas Singh
A five-star hotel that is due to be built at the revamped Pragati Maidan complex is likely to be delayed even further after a lukewarm response and “lack of interest” from the hospitality industry, said senior officials on Monday.
LC Goyal, the chief managing director of the India Trade Promotion Organisation (ITPO), which manages Pragati Maidan, said the Covid-19 pandemic has left the industry more cautious.
“The proposal request documents are ready, and we will wait for the opportune time to invite bids. It may be done in another six months or a maximum of 12 months. Right now, there is no appetite in the hospitality industry to put in money in the project,” Goyal said.
He added that private companies currently prefer to invest in brownfield projects rather than green field projects.
The union government approved in December 2019 a project to transfer of 3.7 acres of land at Pragati Maidan on a 99-year lease for ₹611 crore for a five-star hotel.
The government also at the time said ITPO will redevelop the land into an international exhibition and convention centre and Prime Minister Narendra Modi inaugurated four such exhibition halls under this project last month. These new halls will be utilized to host the 40th annual trade fair between from November 14-27.
Goyal said he was hopeful that the market will improve in six months.
“Even the existing capacity of hotels is currently not getting utilised optimally,” he said.
“The hotel unit will be a completely private sector enterprise in which we will monetise the land. We have a clear proposal in which the land will be monetized and the cost will be paid by the private company over a period of time. They will be able to run the facility for 99 years. The model of providing land for 30-33 years would have run into many problems being witnessed in such models in last few years,” he added.