A park, library, old age home, dispensary and de-addiction centre will also be constructed under the scheme, he said.
All 87 earmarked slum habitations would be covered in the project to make Shimla slum free city and the project would be completed in next two years, Singh said after laying the foundation stone of the scheme under Rajiv Awas Yojna.
Three sites have been identified for construction of 300 houses and 224 needy families would be allotted houses in the first phase. Remaining 76 houses would be given houses on rental basis.
Solid waste management project had been set up at Bhariyal on Tara Devi-Tutu road which has capacity of 100 metric tonne per day and construction of a sanitary land fill site at Bhariyal was also under consideration for scientific management of solid waste, the Chief Minister said.
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He said Shimla Municipal Corporation would implement Rs 11.20 crore e-governance project, aimed at providing 22 modules including e-payment of taxes and other user charges.
Urban Development minister Sudhir Sharma said Shimla Municipal Corporation was working on Rs 250 crore projects under Rajiv Awas Yojna to make the capital city slum free.