The rail line has been laid up to Amb and made operational while work is in progress on the remaining portion up to Talwara in Punjab.
The funds were released following persistent requests made by Chief Minister Virbhadra Singh to Railway Minister Mallikarjun Kharge, Agnihotri said.
Earlier, the Railway Ministry was adamant for identifying government land for extending the railway network but since there was not enough government land, it was decided to provide adequate compensation to the people of the area whose land would be acquired for the project, he said.
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