Official sources said the project will be developed by National Building Construction Corporation (NBCC) in association with Central Public Works Department (CPWD) to which the land belongs.
The project would include building of 5000 plus residences in addition to office space.
The CPWD and the NBCC have already signed a memorandum of association. A memorandum of understanding for the execution of the project will soon be signed, officials said.
As per the memorandum of association, a committee which would comprise three members each from both the organisations will be formed under the chairmanship of DG CPWD to look in to the implementation of the project.
To meet the demand for housing of government officers and those working with PSUs and tribunals, NBCC and CPWD are already redeveloping six colonies in the capital.