Alfred B Ford, chairman of a proposed $500 million Himalayan ski village at Manali, on Thursday said a memorandum of understanding was signed with the state government to soon start the construction work for the village.

He said the village, proposed to be the highest in the world, would set a bench mark for the eco-tourism industry in India.

Ford said talks were on with Kingfisher airlines and Air Deccan to start flights to Bhuntar airport.

He said the village would also have a 'kullu haat' showcasing the traditional handicrafts of the valley and enabling local villagers and craftsman direct business opportunities.

Iqbal Sharma, the local consultant for the village, said it was the biggest ever tourism project of India and would highlight Himachal as a safe and eco-friendly destination to the world.

It will also help India to bid for winter Olympics [Images] in the future, he said.