The proposed project is expected to provide jobs for 150 people during the construction phase and 1,366 personnel during operation phase.
In the proposal, the US Embassy said the existing office that spans on two plots in an area of 1,13,200 square metre (sqm) in Chanakyapuri faces a number of challenges.
The utilities are outdated and inefficient, and there has been no major architectural and infrastructural improvement in the embassy since 1965. The environment ministry recently examined the proposal and gave the final environment clearance to the US Embassy for its Rs 200 crore project with some riders, the document said.
The project will involve partly demolition of existing structure and vegetation. The existing built-up area of 13,189.03 sqm of the building will be demolished and about 205 number of trees will be felled.
Among the conditions specified, the embassy has been asked to plant one tree for every 80 sqm of land.
The proposal entails addition, alternation and erection of the existing embassy for development of new office building and residential units.
The master plan also aims to build new consular facility to increase capacity and enhance quality of experience for visitors as well as update campus to meet current security requirements.
It also aims to update campus utilities to maximize efficient and sustainable systems, the proposal added.
The US was the first country to exchange ambassadors with independent India in 1947. The embassy in New Delhi is one of the largest US diplomatic missions in the world.