An agreement for supply and installation of Signalling & Telecommunication system for railway network in the war ravaged Northern Province of Sri Lanka was signed on Wednesday between Sri Lanka Railways and IRCON (a Government of India Undertaking). The total cost of the project is 86.51 Million USD. This project is a part of Indian Line of Credit of 800 Million USD, which has been extended by Government of India at concessional terms. The repayment period is 20 years with a five year moratorium.The proposed contract will cover the Anuradhapura – KKS and Medawachchiya – Tallai Mannar sections, covering a route of 341 KMs and 28 stations.Meanwhile , IRCON has successfully completed Galle – Matara Section of Coastal Railway Line covering 42 kilometers in February, 2011. The work on Kalutara – Galle Section is scheduled to commence from 1st week of September, 2011 and the same will be completed by March, 2012. The southern coastal railway line project is also being funded under Government of India credit line of 167.4 million USD.