This article has been corrected.
A previous version said the government had proposed an initial budget of Rs 12,000 crore for the project.
The government had already allocated Rs 10,000 to cover costs of building the facility.
The budget proposal would have also included Rs 6,000 per square metre of ground floor space.
It is the first such proposal in the country to provide support to a government-run plant.
The ministry of environment and forests had earlier proposed the project as a pilot project, but the government has now said it will go ahead with the construction.
The project is expected to generate employment of nearly 2,000 people.
The project is being undertaken in three phases: a pre-construction phase, a construction phase and a rehabilitation phase.
The Rs 12 lakh per square meter project price will be levied on construction, rehabilitation and rehabilitation phases.
The facility will be built at the Chintanagar site, about 40km away from the capital city of Lucknow.
It will be situated in the area where the Maha Bandhan temple once stood.
The first phase is to be completed by April 2019.
The construction phase will begin in 2019-2020 and will be followed by a rehabilitation and a reopening of the temple.
The rehabilitation phase will start in 2022-2023 and end in 2024-25.