The Ministry of Road Transport and Highways in India has laid foundation for a Rs26.8bn ($516.89m) tunnel construction project, which will provide an all-weather road connectivity between Srinagar and Leh in the Jammu and Kashmir state.

The Z-Morh Tunnel project will involve the construction of a tunnel on the Srinagar-Leh section of National Highway-1 (NH-1).

A part of the government’s initiative to accelerate the improvement of infrastructure in Jammu and Kashmir, Z-Morh is a 6.5km-long two-lane tunnel with parallel 6.5km-long escape tunnel on a new alignment between Gagangir and Sonamarg under the Srinagar-Leh section.

Leh district is connected to the mainland through two routes, Jammu-Srinagar-Zozila-Kargil-Leh and Manali-Sarchu-Leh, which remain unused for six to seven months during winter due to bad weather conditions.

The state of Jammu and Kashmir believes that the new stretch linking Srinagar and Leh will be key for the enhancement of the socio-economic development for the people in the Laddakh region.

"The Z-Morh Tunnel project will involve the construction of a tunnel on the Srinagar-Leh section of National Highway-1 (NH-1)."

The all-weather road connectivity will also boost industrial growth and local economic activities in villages, towns and urban / semi-urban areas near the project highway.

Besides providing employment to the potential local labourers, the project is expected to boost tourism in Sonamarg in the Ganderbal district and other neighbouring areas.

The project has been assigned to the Border Road Organisation (BRO), and will be built on a Build Own Transfer (BOT) annuity model.

Under the BOT, the private concessionaire funds and undertakes the construction and maintenance of the highway and recovers its investment, along with a predetermined rate of return from the annuity payments by the government.