Venu,
Interesting project. If you have not yet seen the IEEE-488.1 project, that would probably be useful. National Instruments sells some ASICs that could help you if you're allowed to use them. As long as the GPIB interface doesn't need to be a "controller" interface (where it addresses the bus and drives the ATN line), you could use the TNT4882 chip for your GPIB side. There is even an application note for doing this with an 8051: http://zone.ni.com/devzone/conceptd.nsf/webmain/96D2F7612B87FFC9862568040068202C
The general reference manual for the TNT chip is also linked from that page.
Hope this helps.
Scott B.
Applications Engineer
National Instruments