The institute will be jointly established by the state and Central governments.
The district administration has selected five acres land for the institute in the town. Senior tourism officials and Ganjam district Collector Prem Chand Chaudhary recently inspected the proposed site.
"We will allow the tourism department to take possession of the land in advance," said the Collector.
A detailed project report of the proposed institute would be submitted to the Union Tourism Ministry soon and construction work would start after getting the Centre's nod, said a tourism official.
"It is proposed to be upgraded to an institute of hotel management in future," he said.
The food craft institute at Balangir has been upgraded to State Institute of Hotel Management (SIHM). The SIHM offers different degree and diploma courses in tourism and hospitality services, food production, food and beverage services, front office and house-keeping operations.
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