The new council will be tasked with preparing a policy on infrastructure projects that are to be taken up through PPP.
Chief Minister Vasundhara Raje will head the council, while there will also be representatives from the Public Works Committee, Water Resources, Energy Minister and Finance.
The council will deal with any project costing more then $80m.
In August, the same state set up a PPP cell to oversee roads in the province, as it looks to significantly increase its use of private sector investment into its infrastructure.