New Delhi: The ambitious Srinagar rail project, which will be dotted by several tunnels and difficult linkages, would be an engineering marvel when completed in 2007, Railway Minister Nitish Kumar told the Rajya Sabha.

Setting to rest all speculation regarding problem of acquisition of land for the project, kumar said though it is a "difficult project", the work is progressing smoothly and on schedule.

"It is a very difficult project. It will be an engineering marvel when completed and we can proudly show it to the whole world." Kumar said replying to supplementaries during Question Hour.

Kumar said Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed's decision to publicly distribute money to two persons from whom land was acquired for the project has assured others that adequate compensation would be paid for the purpose.

He told Ambika Soni (Congress) that the decision to allow private negotiations for land acquisition had made the task of acquiring land for the project much easier.

The government has sanctioned Rs 500 crore this year for the project, Minister of state for Railways Bangaru Dattatreya said.

PTI