The general administration department issued a government resolution (GR) announcing Kelkar's appointment as chief of the key committee.
The retired bureaucrat will have a two-year tenure, it said.
According to the GR, the committee is mandated to recommend administrative functioning, scope, vision, mission, short and long-term goals of the institute to the state government.
The panel should also carry out a comparative study of other similar agencies, the GR noted.
The government has already sanctioned Rs 5 crore expenditure for the committee's working.
The institute will carry out regular assessment of government policies, research, adopting best practices and administrative reforms via continuous training of officials, said a statement issued by the Chief Minister's Office (CMO) in June.