The institute would start functioning from its temporary campus at Vivek Vihar and initially 320 students will be given admission in two courses - hospitality operations and retail merchandising.
The permanent campus of the institute will come up at Jonapur in South Delhi and it will impart skill development training on par with the best of such institutes in the country.
The institute aims to provide skill development training to 10,000 students per year.
She was speaking after inauguration of two new buildings of Kendriya Vidyalaya at Dwarka.
The Singapore government has offered to provide technical expertise to the proposed institute during Dikshit's visit to that country in October 2011.
Union Minister of State for Human Resource Development Jitin Prasad inaugurated the building.
The Union Minister said his Ministry has been trying to ensure quality education to the students across the city and introduce vocational education in order to ensure skill development.
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