The approval has been given by Union Health Minister Ghulam Nabi Azad, he told reporters here.
The hospital will come up in collaboration with Tata Memorial Centre as per a concept proposal prepared by the PGIMER, Chandigarh.
Singla also said that the Planning Commission has given nod to set up a cancer hospital in Malwa belt on his persuasion at an estimated cost of Rs 500 crore.