The institute, which will also house a livestock farm complex, will come up on a sprawling 25 hectares of land in Rampura Phul area of the district.
A decision to this effect was taken by Chief Minister Parkash Singh Badal during a meeting with senior officers of the animal husbandry, dairy development and fisheries department, an official spokesperson said here.
The college and hospital will be built over 5 acres of land besides other facilities.
The college will be affiliated with Guru Angad Dev Veterinary and Animal Sciences University (GADVASU), which will undertake the project.