The centre has been developed in collaboration with the government of Singapore.
"The institute would be a centre of excellence in skill development and would enhance employability of the youth," Dikshit said.
Initially, admission to Hospitality Operations and Retail Merchandising and other streams would be offered to a total of 320 students.
The skill centre would provide vocational training to 1,000 people annually.
The centre will function from Vivek Vihar in east Delhi till its buildings at Jaunapur in southwest Delhi are built.