Union Health Ministry said the total cost of the project is around Rs 45 crore and this is the first installment for this "important" project in this region.
The grant-in-aid of Rs 14.87 crore has been released under the Tertiary Cancer Centre Scheme of National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular diseases and Stroke (NPCDCS) 2015-16.
"This would help in significantly enhancing the capacity to treat cancer patients in Himachal Pradesh. It is part of our commitment to strengthen the healthcare infrastructure in Himachal Pradesh both quantitatively as well as qualitatively," said Union Health Minister J P Nadda.
Earlier, for upgradation and strengthening of trauma care facilities in government hospitals in the state, the Ministry had released grants of more than Rs 17 crore.
The grant was part of the centrally sponsored scheme of 'Capacity Development for Developing Trauma Care Facilities in Government Hospitals located on National Highways' under the Ministry.
The Ministry has taken several steps for strengthening public health infrastructure in Himachal Pradesh including approval of an AIIMS.
The level-1 Trauma facility for Shimla proposed by the state government is under consideration by the Centre while the process of procurement of health equipment worth Rs 32.78 crore for the Tanda Medical College is underway and nearing completion.
"The order shall be placed by end of December," it said.