The girl is from Ghai's acting school Whistling Woods.
Ghai, who turns 68 Thursday, said: "After nine months of hunt I have finalised the hero and the heroine of my film 'Kaanchi'. The hero is Kartik Tiwari and a new girl from West Bengal, who is under training at Whistling Woods and Mukta Arts, plays the heroine. Rishi Kapoor and Mithun Chakraborty play stellar roles in the film."
Ghai is also excited about the music of "Kaanchi".
"I have recorded three songs (composed) by Ismail Darbar and penned by Irshad Kamil. I am too excited about going on the sets in February. It is such a fabulous script with brilliant characters and great music," said the filmmaker.
"Kaanchi" will release during the same week when Ghai's "Karma" was released in 1986.
" 'Kaanchi' will release on August 15, 2013. Just wait and watch 'Kaanchi'."
While details of the film's plot are elusive, one learns that "Kaanchi" is akin to Raj Kapoor's "Ram Teri Ganga Maili". It's an epic journey of a simple innocent girl into a world of corruption and heartbreak.
Kartik Tiwari sounded understandably excited by the big break.
"Every newcomer dreams of working with Mr. Subhash Ghai. I am two films old. My second film 'Akaash Vani' will release in two days. I am excited. And now to be a part of a film directed by Subhashji just makes the picture complete," said Kartik, who debuted with 2001 movie "Pyaar Ka Punchnama"
It took the 24-year-old nearly two years to find his bearings in Bollywood.
"To be honest, there was no long line of producers at my door even after the good response to 'Pyaar Ka Punchnama'," said the youngster and gives credit to his director Luv Ranjan for not letting him sign "wrong films".
"I could have easily done that since I'm not from the film industry and have no idea of the right and wrong moves. Because I held back, I am today doing a Subhash Ghai film. I can't wait to start 'Kanchi'," says the newbie who admits he's single in spite of a huge fan-following among girls.
"I had a girlfriend. She left me when I became an actor. She couldn't bear to see me romance another girl on screen. Hopefully, after the release of 'Akaash Vani', I'll find a girl to romance for real."