The academy will be Harbhahan's second as he already runs a 'Harbhajan Singh Institute of Cricket' in Jalandhar.
The Himachal Pradesh Cricket Association facility, which already houses India batsman Yuvraj Singh's academy, will now have another cricket coaching institute.
"I am certain that cricket enthusiasts all over the region will soon benefit from the cricket academy that I plan to set up here. My team and I will make sure to bring in the best cricketing facilities to nurture the talent and a dedicated set of coaches to groom the talent in right direction," said Harbhajan in a release.
"It is indeed a proud moment for all of us at HPCA to associate ourselves with truly world class cricketers like Harbhajan and Yuvraj," Thakur said.
"I think these cricket academies will play a significant role in unearthing new talent and shaping the future of Indian cricket. It has for long been our endeavour to promote sports at the grass roots levels in the region and this association with Harbhajan is yet another step in that direction," he said.