Zojila Tunnel project awarded to Hyderabad-based Megha Engineering

New Delhi: The National Highways and Infrastructure development Corporation (NHIDCL) on Tuesday issued the letter of award to Megha Engineering to execute the Zojila Tunnel project in Jammu & Kashmir. The Hyderabad-based company last Friday emerged as the lowest bidder for the project, quoting a price of Rs 4,509 crore. Larsen & Toubro and Ircon were the two other companies in fray for the project.

The National Highways Infrastructure Development and Construction limited (NHIDCL) in June this year invited fresh bids for the project, pegging its cost at Rs 4,430 crore. The project has been awarded in record two and a half months’ time. The construction work is likely to commence in October this year, said an official.

NHIDCL has a number of tunneling projects under execution, including Z-Morh in J&K, Sylkyara under Char Dham Project in UK and Chisupani in Sikkim. The 14.2 km-long tunnel which will ensure all year connectivity between the Union territories of J&K and Ladakh, had been stalled for almost six years due to several reasons.


Zojila tunnel has seen cost escalation to the tune of around Rs 1,600 crore after it was stranded by IL&FS Transportation Network, the road development arm of crisis-hit Infrastructure Leasing & Financial Services (IL&FS).