New Delhi: The government today approved a Rs 2,272 crore highway project in Karnataka for widening a stretch on National Highway No 63.

"The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the development of four-laning of Hubli-Hospet Section of NH-63 in Karnataka," an official statement said.

The cost of the project is estimated to be Rs 2,272.20 crore including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities, it said adding the total length of the road to be developed is approximately 144 kms.

"This work will be done under the National Highways Development Project (NHDP) Phase-IV on Engineering, Procurement and Construction (EPC) basis," the statement said.

The project will help expedite the improvement of infrastructure in Karnataka and in reducing the time and cost of travel for traffic, particularly heavy traffic, plying between Hubli and Hospet section.

The development of this stretch will also help uplift the socio-economic condition of this region in the state.

"It would also increase employment potential for local labourers for project activities. It has been estimated that a total number of 4,076 mandays are required for construction of one kilometre of highway. As such, employment potential of 5,86,600 (approx) mandays will be generated locally during the construction period of this stretch," the statement said.

The project was earlier approved on Build?operate?transfer (Toll). Bids were invited for the project three times and one more time with increased Viability Gap Funding (VGF).

"However, no bids were received. As such, it was decided to implement the project through EPC mode. The project has been appraised by Expenditure Finance Committee (EFC) in its meeting held in March, 2016," the statement said.