Zojila Tunnel breakthrough: Gadkari saves ₹5,000 crore, cuts cost to ₹7,000 crore

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Zojila Tunnel breakthrough: Gadkari saves ₹5,000 crore, cuts cost to ₹7,000 crore

Synopsis

The Zojila Tunnel — five failed tenders, a ₹12,000 crore estimate, and years of sub-zero construction — has reached its breakthrough moment. Gadkari's announcement of a ₹5,000 crore saving reframes the project not just as an engineering feat but as a rare public-infrastructure win on cost discipline, in a region that has been cut off every winter for generations.

Key Takeaways

Nitin Gadkari performed the breakthrough blast at the Zojila Tunnel on 9 June .
Project cost has been cut from an estimated ₹12,000 crore to ₹7,000 crore , saving ₹5,000 crore .
The tunnel is located at approximately 3,000 metres above sea level and will provide year-round connectivity to Ladakh .
80 per cent of the construction workforce is from the local region.
New projects announced include a ₹1,000 crore Leh bypass , two additional tunnels , and the ₹1,500 crore four-laning of the Srinagar-Sonmarg road .
J&K L-G Manoj Sinha and Chief Minister Omar Abdullah were present at the ceremony.

Union Road Transport and Highways Minister Nitin Gadkari on Tuesday, 9 June performed the breakthrough blast at the Zojila Tunnel in Jammu & Kashmir, announcing that the project would be completed at ₹7,000 crore — a saving of ₹5,000 crore against the originally estimated ₹12,000 crore. The milestone marks a significant step toward year-round connectivity between Srinagar and Ladakh, a region that has historically remained cut off for nearly six months each year due to heavy snowfall.

A Personal Mission Turned National Infrastructure Milestone

Gadkari described the tunnel as both a national priority and a personal commitment. 'It is going to be a state-of-the-art tunnel as it has been built on world-class safety standards,' he said at the breakthrough ceremony. 'I am happy that it is a lifeline for Ladakh and J&K. It is situated at around 3,000 metres above sea level, and the temperature often drops to minus 4 degrees Celsius even as our workers and engineers continued to work on the tunnel.'

The minister recalled that his resolve to build the tunnel dated to his tenure as BJP president, when local residents told him the region was 'virtually closed for six months.' When Prime Minister Narendra Modi came to power and Gadkari was given charge of the road transport ministry, he said he moved quickly to make the tunnel a reality.

Cost Savings and Tendering Challenges

The project's road to approval was far from smooth. Gadkari revealed that the tendering process was attempted four times without success before he personally signed the allotment on the fifth attempt at ₹12,000 crore. The final outlay, however, is now projected at just ₹7,000 crore, delivering a ₹5,000 crore saving to the exchequer. He also credited the managing directors of the private construction company involved and of the National Highways & Infrastructure Development Corporation Ltd (NHIDCL) for making the project viable. Notably, 80 per cent of the workforce engaged in construction belongs to the local region — a detail Gadkari highlighted as a point of pride.

New Projects Announced for Ladakh and J&K

Beyond the Zojila Tunnel, Gadkari used the occasion to announce a slate of new infrastructure projects for the region. These include a ₹1,000 crore Leh bypass, with work set to begin within six months, which will allow vehicles arriving from Manali and Srinagar to bypass Leh town entirely. He also announced two additional tunnels and multiple road projects in Ladakh.

For Jammu & Kashmir, Gadkari announced the four-laning of the Srinagar-Sonmarg road at a cost of ₹1,500 crore, along with corridor projects covering Katra-Srinagar, Kishtwar-Anantnag, and the Jammu-Akhnoor route.

Senior Officials Present at the Ceremony

J&K Lieutenant Governor Manoj Sinha and Chief Minister Omar Abdullah accompanied Gadkari during the inspection and the breakthrough operation, underscoring the political significance of the milestone for both the Union Territory and the Centre.

With the Zojila Tunnel on track for completion, Ladakh's long-standing connectivity challenge is set to see a structural resolution — one that could transform trade, tourism, and strategic access in one of India's most critical border regions.

Point of View

000 crore saving on a public infrastructure project of this scale is genuinely unusual in India's highway sector, where cost overruns are the norm rather than the exception. The more consequential question is timeline: Gadkari's announcement does not specify a completion date, and Zojila's extreme altitude and weather conditions have historically been the harder variable to control. The cluster of new project announcements — Leh bypass, two more tunnels, Srinagar-Sonmarg four-laning — is politically well-timed ahead of the next electoral cycle in J&K, but execution capacity in the region remains a known constraint. Whether NHIDCL can sustain the cost discipline seen on Zojila across this expanded pipeline will be the real test.
NationPress
10 Aug 2026

Frequently Asked Questions

What is the Zojila Tunnel and why is it significant?
The Zojila Tunnel is a major road tunnel being constructed in Jammu & Kashmir to provide year-round connectivity between Srinagar and Ladakh. The region currently remains cut off for nearly six months each year due to heavy snowfall, making the tunnel a critical lifeline for trade, tourism, and strategic access.
How much has the Zojila Tunnel cost been reduced?
The tunnel's original estimated cost was ₹12,000 crore, but Minister Nitin Gadkari announced on 9 June that it will be completed at ₹7,000 crore — a saving of ₹5,000 crore. The tender was awarded on the fifth attempt after four earlier rounds failed.
What new infrastructure projects were announced for Ladakh and J&K?
Gadkari announced a ₹1,000 crore Leh bypass (work to begin within six months), two additional tunnels in Ladakh, and the ₹1,500 crore four-laning of the Srinagar-Sonmarg road. Other J&K road projects announced include the Katra-Srinagar, Kishtwar-Anantnag, and Jammu-Akhnoor corridors.
Who was present at the Zojila Tunnel breakthrough ceremony?
J&K Lieutenant Governor Manoj Sinha and Chief Minister Omar Abdullah accompanied Union Minister Nitin Gadkari during the inspection and breakthrough operation of the Zojila Tunnel on 9 June.
What is the NHIDCL's role in the Zojila Tunnel project?
The National Highways & Infrastructure Development Corporation Ltd (NHIDCL) has been a key implementing agency for the Zojila Tunnel. Gadkari specifically credited the NHIDCL's managing director, along with the private construction company involved, for enabling the project's cost-efficient execution.
Nation Press
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