The new electronic-cigarette kiosk at the Jindoori Expressway station in central Mumbai will open next month.
The station will be the second electronic-cigarettes station in India after the first was opened in Hyderabad.
The new kiosk will be situated at a distance of around 20 metres from the road but the operator said it would be ready by December 2019.
The kiosk is being designed to be user-friendly and provide an alternative to the traditional cigarette vending machines.
The kiosk can accommodate up to 50 people and is expected to sell up to 600 cartridges.
The station is one of several initiatives by Jindorikisha to boost sales and generate business.
The government has set aside a total of Rs 1.9 billion to build the kiosk and other similar electronic-cigarette stations.
Jindora is aiming to build three stations by 2021, and expects to expand the service by 2025.