However, Kolkata Municipal Corporation (KMC) has decided not to hold a `reserve price' on the plot and offer it on a 99-year lease to the highest bidder. April 11 is the last date to obtain a `request for proposal' document from the corporation.

The decision not to have a reserve price could have been influenced by KMC's experience at its last auction of a plot off the Bypass, which eventually went to LIC. As many as 55 of the 57 companies, which had originally purchased request documents, had backed out of the bidding process because of the "high reserve price of Rs 275 crore". KMC ultimately had to choose only between LIC and Park Hotels for the plot opposite Science City.

However, hoteliers and real estate players said the 3.358 acre-plot being put on the block by KMC is too small to set up a five-star deluxe hotel. "At best, a four-star or boutique hotel can be set up on the site as even a relaxed floor area ratio (FAR) norm will only allow a maximum built-up space of 3-3.5 lakh sq ft on the plot," industry sources said.