The funds raised through 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.
ITPO is a body under the commerce ministry which runs the exhibition centre 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.
"Union Cabinet approves monetisation of 3.70 acres of land at Pragati Maidan by ITPO on long term leasehold basis for 99 years for construction and running of a hotel by a third party including private sector through a transparent competitive bidding process," an official statement said.
"This measure is part of the Phase - I of redevelopment project of Pragati Maidan i.e. IECC project," it added.
A hotel facility is an integral part of any meetings, initiatives, conferences and exhibition (MICE) hub/ destination and a suitable space of land is accordingly proposed by ITPO to be set apart for a five star/budget hotel.
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.