Maharashtra Cabinet on Wednesday approved a proposal to allot five acres of land owned by the Haffkine Institute to Tata Memorial Hospital to build an extended wing.
The hospital has planned to open a dedicated branch for exclusive treatment of women and children.
The land would be used for the cancer hospital and a hydrogen beam therapy centre.
The land would be given at a nominal cost for a period of 30 years, with a provision for renewal of the allotment every 30 years, an official release said. The hospital management had demanded the land, owned by the institute at Parel in central Mumbai.
Haffkine is controlled by the state government. The Central Government has provided funds of Rs 450 crore for modernisation of the hospital.