The ambitious Kiratpur-Manali four-lane highway project in Himachal Pradesh has seen its cost triple from the original Rs 1,818 crore to nearly Rs 6,000 crore. Repeated monsoon disasters, particularly in 2023 and 2025, have inflicted extensive damage on the under-construction highway, forcing the National Highways Authority of India (NHAI) to undertake large-scale reconstruction, redesign vulnerable stretches and explore new alignments.
Project Background and Initial Plans
Construction on this strategically important highway began in 2013 with the objective of improving connectivity between Punjab and Himachal Pradesh's tourism hub. The project was divided into five packages: Kiratpur-Nerchowk, Nerchowk-Pandoh, Pandoh-Takoli, Takoli-Kullu and Kullu-Manali. While four stretches have been substantially completed, the Pandoh-Takoli section continues to pose major engineering challenges due to recurring landslides and unstable hill slopes.
The devastating monsoon events of 2023 and 2025 dealt severe blows to the project. Flashfloods, landslides and cloudbursts washed away newly constructed road stretches, damaged viaducts and rendered infrastructure unsafe at several locations. One of the major casualties was the Jhalogi tunnel, which became unsafe after last year's monsoon disaster and is yet to be reopened.
Pandoh-Takoli Stretch: The Most Vulnerable Segment
The Pandoh-Takoli stretch, located between Mandi and Kullu, has emerged as the most vulnerable segment of the highway. Frequent slope failures and massive landslides have repeatedly damaged the four-lane carriageway, compelling engineers to redesign parts of the alignment to ensure long-term stability. Besides rebuilding damaged portions, the NHAI is strengthening fragile hill slopes, constructing retaining structures and carrying out fresh geological surveys to identify safer alignments and tunnels wherever the existing route has become unstable.
Project Director Varun Chari said restoration and construction work on the remaining stretch was progressing on a war footing. According to him, the repeated rain-induced disasters had significantly delayed the project, but efforts were underway to complete the remaining work at the earliest.
Economic and Tourism Benefits Remain Paramount
Despite the setbacks, the project continues to hold immense significance for Himachal Pradesh. It is expected to transform connectivity to Kullu, Manali and Lahaul and Spiti, three of the state’s biggest tourism destinations. Once completed, the highway will provide safer and smoother travel, reduce congestion and substantially cut travel time for tourists, residents and commercial vehicles.
The benefits extend beyond tourism. Improved connectivity will enable faster transportation of apples, vegetables and other horticultural produce from the hill districts to markets across northern India, reducing transit time, transportation costs and post-harvest losses for farmers.
The completed highway will also shorten the distance between Kiratpur and Manali from 232 km to 195 km. According to NHAI estimates, a multi-axle vehicle using the upgraded corridor will reduce fuel consumption and vehicle wear and tear by nearly 50 per cent, translating into annual savings of Rs 900-1,000 crore in fuel and maintenance costs. Reduced congestion and smoother traffic flow are also expected to lower vehicular emissions and environmental pollution.
Future Outlook
Though nature has repeatedly disrupted the project over the past decade, the NHAI remains optimistic that the remaining work will soon be completed. Once finished, the highway will deliver one of Himachal Pradesh’s most crucial infrastructure projects and provide a major boost to tourism, trade and regional development.



