The project initially estimated at 50 million US dollars will see a cable car system being built on 21 towers running from the Nanu Oya railway station to Lake Gregory in Nuwara Eliya.
Nuwara Eliya is around 8 kilometres away from Nanu Oya.
The cable car system will also connect the Nuwara Eliya Race Course and Single Tree Hill.
It is expected to operate 86 cars which can carry 10 passenger each.
In the first stage 43 cars are expected to be built.