The Indian Government has agreed to completely fund the $134m (INR639 crore) Mughal road project in Kashmir.

The project has, until now, faced delays due to a lack of funding from the Jammu and Kashmir Government who were previously required to bear half the cost.

The 75km double-lane Mughal road will connect Kashmir’s south to Bafliaz in Jammu region’s Poonch district.

The road would serve as the shortest possible surface link between Kashmir and other areas as well as the only alternative to the existing 300km Jammu-Srinagar highway.

The project is expected to finish in 2011.