THE state government announced a $150,00 contribution towards a $450,000 business case into Bendigo TAFE's McCrae Street campus on Friday.
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Soon to become Bendigo Kangan Institute, the business and strategic plan would guide a proposed $25 million revamp of the McCrae Street campus.
The business plan funding came out of the state government's $1 billion Regional Growth Fund and the remaining funding was providing by the institute.
Member for Northern Victoria Damian Drum said Bendigo Kangan Institute would include two centres of excellence focusing on health and business.
"The centres of excellence will mean Bendigo Kangan Institute will be able to provide the new Bendigo Hospital with training and development support to its staff," he said.
"The asset master plan will consider the scale and the merit of the proposed works."
The institutes announced a merger in May this year.