Under the agreement, India will supply and install a Signaling and Telecommunication system for the railway network in the Northern Province at a cost of US$ 86.51 million provided by the Indian government at concessional terms as a part of Indian Line of Credit of US$ 800 million.

The proposed contract will cover the Anuradhapura- Kankasanthurai (KKS) and Medawachchiya Thalaimannar sections which cover a route length of 341 kilometers and 28 stations.

The signaling work involves provision of centralized control panel, interlocking color light system with electrically operated points and track detection system. All the level crossings will be interlocked with new signaling system, which would ensure safety at level crossings.

The telecommunication work involves provision of optical fiber communication system throughout the section. In addition, public address system, etc., shall also be provided at major stations.

General Manager of Sri Lanka Railways B.A.P. Ariyarathna and the Managing Director of Indian Railway Construction Company Limited (IRCON) Mohan Tiwari signed the agreement today in the presence of Minister of Transport Kumara Welgama, High Commissioner of India Ashok K. Kantha, and Secretary, Ministry of Transport Dhammika Perera, a press release by the High Commission of India in Colombo said.

Minister Welgama speaking at the occasion has noted the deep bond of friendship between the two countries and expressed his deep appreciation for assistance provided by the Government of India.

In his remarks, High Commissioner Kantha said the work is already in progress for track- laying work on the Medawachchiya - Madhu Road, Madhu Road - Thalaimannar and Omanthai - Pallai Sections. He added that IRCON is receiving full support of the Government of Sri Lanka and the projects would be completed as per schedule.