The model approved by the Cabinet at its meeting chaired by Chief Minister Sheila Dikshit would enable the institute to be self-sufficient in nine years' time, an official spokesman said.
The capital cost and the finances for procuring medical equipment would be borne by Delhi Government.
The running cost would be given as grant-in-aid annually for the first few years.
Patients would not have to pay for diagnosis and treatment, but they will be charged for medicines and consumables.
The consultation charges for private patients would be Rs 400 and for semi-private patients Rs 200, while poor patients would be charged only Rs 10.
The salary structure of the ILBS would be comparable to AIIMS.
Source: PTI News