KMC proposes to lease out 3.358 acres off Eastern Metropolitan Bypass for 99 years with renewal clauses for setting up a deluxe hotel. The site is strategically located and well connected to the CBD of the city and is 20-minutes drive from the international airport.

Earlier, the DLF-Hilton combine and Emaar MGF had acquired two different plots of land for their respective hotel projects. KMC has in the past entered into PPP arrangements for setting up market complexes, housing complexes, etc. It has also been involved in providing a range of services to the city including the supply of drinking water, sewerage and drainage, solid waste management, roads maintenance, street lighting and slum development works.

A successful bidder, whose net worth as per audited financial statements for 2006-07 is not less than Rs 250 million, will be picked up through a process of sealed bid. A senior KMC official on conditions of anonymity said, "We have already received proposals from several corporate houses." But he declined to divulge any names. It may be noted that Kolkata has been experiencing a steep rise in demand for high-end hotel rooms following the growth of the IT/ITeS sector and the revival of industrial environment in the state.