IRB Infrastructure Developers is set to sign a concession agreement by March 2016 for the INR100.5bn ($1.5bn) Zojila Pass Tunnel in Jammu and Kashmir, India.
The company secured a contract from the ministry of road transport and highways for construction, operation as well as maintenance of the tunnel, which is the longest tunnel in southeast Asia.
Work will involve the construction of approaches on National Highway-1 on design, build, finance, operate and transfer (annuity) basis.
The project include the construction of a 14.08km tunnel with a 10.8km approach road with three vertical ventilation shafts, an avalanche protection mechanism, as well as a 700m snow gallery.
The project is expected to be completed in seven years, with a 22-year concession period.
IRB Infrastructure Developers will get INR9.81bn ($143.1m) in semi-annual annuity from the government that will begin after commissioning of the project.