New Delhi: The Union Road Transport Ministry signed a Memorandum of Understanding (MoU) with a Hyderabad based company on Monday for the conversion of Nechipu –Hoj route of Arunachal Pradesh into a two lane national highway.

The route shares an international border with China and the conversion of this 311-km long road into two way lane is expected to cost a whopping Rs 1486 crore. The ambitious project is expected to be completed by June 2016. The stretch is also believed to have great strategic importance for both the nations.

The Nechipu –Hoj road stretch is part of the trans-Arunachal Highway. In January 2008, during a visit to Itanagar and Tawang, Prime Minister Manmohan Singh announced a Rs24,000 crore package for the state. Priority was given to roads particularly to the construction of a Trans-Arunachal Highway.

This highway not only connects the western districts of Arunachal Pradesh with Itanagar but also helps in increasing the socio-economic development of the state.

Besides, after the completion of this project, the investigating agencies will also get a help in keeping a track on any anti-national activity near the border region.