New Delhi, Feb 20 (IANS): The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Tuesday approved an over Rs 1,300 crore project for the construction of a 4.53 km-long two-lane Silkyara Bend-Barkot tunnel along National Highway-134 in Uttarakhand.

The bi-directional tunnel with an escape passage will reduce the travel distance between Dharasu and Yamunotri by about 20 km and travel time by about one hour.

It will provide all weather connectivity to Yamunotri, one of the pilgrimages on the famous Char Dham Yatra and also boost development, trade and tourism in the region along the old NH-94 route, the government said.

The project was estimated to be completed in four years.

The project, a part of the ambitious Char Dham Plan, will be built under the Engineering, Procurement and Construction (EPC) Mode and will be funded by the Ministry of Road Transport and Highways through the National Highways and Infrastructure Development Corporation Ltd (NHIDCL).

"The civil construction cost of the project is estimated at Rs 1,119.69 crore, while the total project cost is Rs 1,383.78 crore, which is inclusive of the cost towards land acquisition and rehabilitation and other pre-construction activities, as well as maintenance and operation cost of tunnel for four years," the government said in a release.