The new building of Bhasha Bhavan would be set up at Dhobi Talao, in place of the old open theatre, and would house offices of the directorates of cultural affairs and language and the Marathi development institute.
"It was observed that many states have set up Bhasha Bhavans for development, conservation and protection of their languages. However, no such structure exists in Maharashtra," an official said.
The decision to set up the Bhasha Bhavan, whose building cost would be around Rs 80 crore, was taken at a Cabinet meeting chaired by Chief Minister Prithviraj Chavan.
The Cabinet was also informed that the water level in reservoirs in the state has gone up to 34 per cent and that sowing operations have been completed in 73 per cent farm land.
The number of tankers supplying water to villages and hamlets was 2,897, compared to 2,483 at this time last year, officials informed the meeting.