"In its meeting, the Cabinet approved a proposal for revised administrative approval for the construction of a new mufti-storeyed Command Hospital accommodation for essential category staff and dental centre at Pune at a revised estimated cost of Rs.382.37 crore," an official release said.
"Command Hospital in Pune is a 1047 bedded referral hospital which provides tertiary level medical care in various specialities and super-specialities to Service ex-Servicemen, their families and civilians," it said.
The hospital is also affiliated to the Armed Forces Medical College, Pune for teaching and training of both undergraduate and postgraduate students.
The hospital is currently housed in old buildings and therefore, there is an urgent requirement for the new hospital building.
The project was originally approved by the Cabinet in October 2008 at an estimated cost of Rs.270.77 crore but later a need was felt for including certain additional items of technical and statutory nature.
"These items have now been included in the revised proposal. Based on the current market rates, the total revised estimated cost of the project is Rs.382.37 crore and the project is planned to be completed by November 2016," it said.