The construction of the 650-bedded hospital was completed in 2009 but it was yet to be commissioned due to various reasons like delay in deciding on the management structure of the hospital.
The decision to allocate the finacial assistance to the hospital was taken at a cabinet meeting presided by Chief Minister Sheila Dikshit.
Delhi government had in June last year decided to hand over the management of the hospitals to a society comprising central and city government officials. Initially, government had decided to run it on PPP mode.
"We have constructed the hospital to decongest the existing hospitals and offer patients better facilities," Dikshit said.
She said Rs 54 crore will be spent on completing remaining works in the hospital and make it functional at the earliest.