This was announced by chief minister Virbhadra Singh at the Independence Day function in Nahan town.
Dhaulakuan is situated on the outskirts of Nahan town in the Shiwalik foothills.
Ever since finance minister Arun Jaitley had announced an IIM for Himachal in his budget speech,the state government had begun looking for suitable land for the premier management institution.
The chief minister also announced a government engineering college at Kotla near Jeuri in Shimla,district.
In another significant decision 10 per cent DA was announced to state government employees and pensioners from Jan 2014. It would be added in the Sept pay.The arrears will be deposited in the GPF of the staff.
Sources said this is expected to put a further burden on the state exchequer by Rs 520 crore.
The hill state has one of the highest ratio of government staff in the country.
Himachal Pradesh was lashed by heavy rain on Independence Day, but Independence Day functions were held all over the state .