The project in picturesque Manali area of Kullu district promoted by Alfred Ford of the Ford Motor Company was started during the previous Congress government but was vehemently opposed by BJP and grounded by its government in December 2007.
The matter was reviewed at a high-level meeting presided by chief secretary S Roy and a decision was taken to allow the promoters of the Himalayan Ski Village to go ahead with the Rs 1,581 crore (USD293 million) project, envisaging the construction of 170 rooms in the Himalayas.
The opposition BJP reacted sharply to the development, saying while Congress government has cancelled the lease of yoga guru Ramdev "who was encouraging local herbs and Ayurveda, it is inviting foreigners to start business in the state."
"It will never be tolerated," state BJP vice president Ram Swaroop Sharma said.
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Alleging "some deal" behind the decision, he said the previous BJP government had cancelled the project as it was against the culture of the state as well as harmful to the environment and local businesses.
However, Roy said the project would bring investment to the region.
"We don't want to create any hurdles in the implementtion of the project provided the promoters got all the clearances afresh including the environment and environment impact assessment report," he said.
The project was sanctioned by the Congress government in 2005 but it evoked strong protests from opposition BJP and also local organisations and environmentalists.