The decision was taken at a Cabinet meeting presided over by Chief Minister Nitish Kumar, Principal Secretary (Cabinet Coordination and Secretariat) Ravikant told reporters
The sanctioned amount will be spent on construction of culverts and bridges, land acquisition, utility shifting and environment clearance for the road project, he said.
The remainder of the road project cost of Rs 3557 crore will be released in due course of time, Ravikant said.
While the state government will bear 53.3 percent of the cost of the road project, the remaining 46.7 per cent cost will be borne by the central government.
The ambitious road project, spread over East Champaran, West Champaran, Sitamarhi, Madhubani, Supaul, Araria and Kishangaj district will be completed by 2015-16, he said.
Secretary (Road) Pratyaya Amrit said the road project being undertaken with full budgetary support of the Centre and the state government will boost security in Bihar districts along the Indo-Nepal border by improving road connectivity upto various check posts.
The tender for the road project related work have been floated and the actual work will begin sometime around November.