The decision was taken at a cabinet meeting, chaired by Chief Minister Siddaramaiah.
Briefing reporters, Law Minister T B Jayachandra said the Navy would invest around Rs 400 crore to realise the project.
Meanwhile, the Cabinet also gave the nod for establishing generic drug stores in all 177 taluks of the state under the public-private-partnership model.
On the report submitted by the B Padmaraj committee on 'G' category sites (under discretionary quota of Government), the Cabinet decided to constitute a sub-committee under the chairmanship of Jayachandra to take a call on the action to be taken on it and framing rules on such allotments by the Bangalore Development Authority.
Udupi Power Corporation was allowed to import 1.5 million tonnes of coal for its 1,200 MW project till December next year, Jayachandra said.
The commission of fair price shops has been raised from Rs 31 to Rs 36 per quintal of ration such as rice, wheat and sugar, the Minister said.
Gram Panchayats would get common service centres which would be taken up as mission mode projects under PPP model, as per another cabinet decision, he added.
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