The Cabinet, chaired by Prime Minister Narendra Modi, approved an MoU to be signed between the two countries for laying down the modalities concerning the bridge, an official statement said.
The new bridge is part of upgradation of the Kakarvitta (Nepal) to Panitanki Bypass (India) on National Highway 327 B, covering 1,500 meters, including a six-lane approach road of 825 meters.
Mechi Bridge is the ending point of Asian Highway 2 in India leading to Nepal and provides critical connectivity.
The estimated cost of construction of the bridge is Rs 159 crore. India will fund this through an Asian Development Bank loan.
The National Highway and Infrastructure Development Corp (NHIDCL) has been designated as the implementing agency for this project.