Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu said Wednesday his government will build an 890-metre-long double-lane tunnel under the Jakhu Hill in Shimla to ease traffic congestion.

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Presiding over a meeting of the public works department here, Sukhu said the tunnel would be constructed from Nav-Bahar to the circular road near the Indira Gandhi Medical College with an outlay of Rs 295 crore.

According to a statement, Rs 100 crore has already been released and the tender process will begin by June end.

He said the state government was making earnest efforts to address the problems of Shimla city and directed the department to remove all bottlenecks on the circular road to ensure a smooth flow of vehicular traffic.

The chief minister said Rs 122 crore has been allocated for the widening of the circular road. 

A parking facility for an additional 3,000 vehicles will be developed, he added.

The government is also mulling to eliminate hanging wires in Shimla with a project to construct underground ducts for cables, according to the statement.

It said that in the initial phase of this project, Rs 23 crore would be spent with a focus on the heart of the city - Mall Road, Lower Bazar and Middle Bazar areas.