The move was taken to free these places, popular among tourists, of shops and stalls.
Ajivika Bhawan, to be built at an estimated cost of Rs 4 crore, would have 222 shops. The building near the 'Lift' would also have parking space for about 50 vehicles, besides toilets and drinking water facilities. It will be illuminated using solar power, an official said.
Parts of The Ridge (from the Scandal Point to the Roller Skating Rink and the Ritz Theatre) and Mall Road (from Central Telegraph building to the Shimla Club), and the Scandal Point-Rivoli Road will be made vendor-free zone.
The funds for the project have been sanctioned by the Union Ministry of Housing and Urban Poverty Alleviation. Shimla Municipal Corporation has already received Rs 2.50 crore for the project.
Meanwhile, Himachal Pradesh Governor Urmilla Singh laid the foundation of Rani Park at Parimahal near Kusumpti, 6 kms from here. Land for the park has been provided by the Governor as it was earlier part of the Raj Bhawan estate, according to an official release.