The Union government has sanctioned the Fotu La Tunnel Project at a cost of ₹1,196.22 crore. The tunnel will be built on National Highway-01 (NH-01), the strategic road that links Uri, Srinagar and Leh in Ladakh. Once ready, the tunnel is expected to improve all-weather movement on this high-altitude corridor, which is important for both civilian travel and the supply of defence forces in the region. The project adds to a series of tunnel works being taken up to strengthen connectivity in Jammu & Kashmir and Ladakh.