The LoA was awarded after the company emerged as the lowest bidder for the project.
The engineering, procurement and construction (EPC) contract covers construction, operation and maintenance of the two-lane bi-directional Zojila Tunnel with Parallel Escape (Egress) Tunnel on Srinagar-Leh Section in the Jammu & Kashmir.
The contract is valued at Rs48.99bn ($767.73m) and has a deadline of 2,555 days to complete the tunnel construction.
Earlier this month, the Indian Union Cabinet Committee on Economic Affairs granted permission for the 14.2km-long tunnel project to provide all-weather connectivity between Srinagar, Kargil and Leh.
Due to heavy snowfall in winter, the Srinagar-Kargil-Leh Highway will remain closed.
Touted to be the Asia’s longest bi-directional pass tunnel, the project once completed is expected to reduce the travel time between Srinagar and Leh to 15 minutes from the current 3.5 hours.
Zojila pass is situated at an altitude of 11,578ft on Srinagar-Kargil-Leh highway.
The project is being implemented by the Ministry of Road Transport and Highways through NHIDCL.
Zojila tunnel, along with the 22km Z-Morh tunnel, is set to ensure year-long road connectivity between Srinagar and Leh.