The Indian government has approved construction of a power transmission link between Srinagar and Leh of Jammu Kashmir.

Finance Minister P Chidambaram was quoted by PTI as saying that the power line will be constructed at the cost of INR18.4bn ($341.8m).

"The power transmission system from Srinagar to Leh will be constructed at the cost of Rs 1,840 crore, Rs 226 crore provided in current Budget (2013-14)," Chidambaram said.

The proposed 220kV transmission line, which will be implemented by central transmission utility Power Grid Corporation of India (PowerGrid), would pass through Kargil, Drass, Khalsi.

The link is aimed at enhancing the reliability of power supply. The central government had approved this proposal in 2003.