The statutory body, to be chaired by the chief minister, will also take into account safeguards required in view of challenges to be faced 100 years from now.
Bahuguna, who made the announcement here at a conference today, said the decision was taken by the state cabinet considering the massive damage caused by the calamity in different areas across the state.
"The authority will consist of experts from different fields," he said.
Rural Development Minister Jairam Ramesh, who also addressed the conference, described it as a "progressive and significant step which will inspire confidence in people".
Apart from a package of Rs 1,000 crore announced by Prime Minister Manmohan Singh for reconstruction and rebuilding efforts, Rs 2,500 to 3,000 crore more is expected from the World Bank and the Asian Development Bank for the purpose, Ramesh said.