It is being produced under the Phantom Films banner.
The film, to go on floors early 2014, is a thriller with an ensemble cast with Amitabh in the lead role.
"I am delighted to be working with Anurag, a director, who has through his rugged belief in his kind of cinema, compelled us to fall in line with him. I have a general concept of the story and anxiously wait for him to begin shooting," Amitabh said in a statement.
Kashyap too is "thrilled" about the collaboration.
"Like everyone, I have also been a fan of Mr.Bachchan from my growing-up years. Though I wanted to make a film with him for the longest time, I wanted to be sure that the role is something he has never done before. While working on the short film with him, I got this idea, which we discussed and he agreed," he said.