Speaking at the 160th Annual Day celebrations of Central Public Works Department (CPWD) here, he said the organisation has been alloted 130 acres of land for this purpose.
"This new institute will have a technology park with various resource centres related to public health engineering, rain water harvesting, solid waste management," Naidu said.
The academy will also take up skill upgradation programmes, he added.
Stating that CPWD has come a long way since its humble beginning in July 1854, Naidu said: "Today it is a 40,000 plus strong family which primarily responsible for building and maintaining the assets of central government."