With the new terminal, the peak hour passenger capacity is expected to go up to 800 from current level of 250.
State-owned Airports Authority of India (AAI) is operating the Leh airport, which has been seeing increased flight movements in recent times.
"Leh Airport - New terminal to be constructed @ Rs 200 cr to increase peak hour passenger capacity from 250 to 800," Raju said in a tweet.
Last month, the Jammu and Kashmir government had said it would take up with the Centre the issue of land for construction of a terminal building at Leh airport.
"As per IAF, they will hand over 11.8 acres of land to Airport Authority of India for construction of Terminal Building (at Leh airport) only after getting No Objection Certificate for the state government's land of 28 acres," the government had said.