New Delhi, July 16 (IANS): The eastern peripheral expressway which aims to de-congest traffic in the national capital will be widened at a cost of Rs.7,558 crore, the government said on Thursday.

The decision for the six-laning of the National Highway-II (National Expressway) was taken by the Cabinet Committee on Economic Affairs (CCEA) which met here under the chairmanship of Prime Minister Narendra Modi here.

According to the CCEA, the project will cost about Rs.7,558 crore -- which includes Rs.1,795.20 crore for land acquisition, resettlement and rehabilitation and other pre-construction activities in the parts of Haryana and Uttar Pradesh that it passes through.

The widening work will be carried out on a 135 km stretch under engineering, procurement and construction (EPC) model of development.

Apart from uplifting the socio-economic condition of the concerned regions, the project will also de-congest traffic in the national capital.

"The road is a peripheral road around Delhi, so that the traffic which is not destined for Delhi, does not pass through this city. This avoids congestion and pollution in the city," the CCEA said in a statement.