The Cabinet Committee on Government Purchase in a meeting chaired by Finance Minister AMA Muhith cleared the proposal on Sunday.
According to the proposal, the money will be needed to construct an around 4-kilometre stretch of the flyover from Shantinagar to Rampura via Malibagh, Razarbagh and Mouchak.
After the meeting, Additional Cabinet Secretary Mostafizur Rahman told the media that the allotment for the contract of this part of the flyover was raised from around Tk 3.44 billion to a little over Tk 4.52 billion.
According to him, this is the first increase in allotment for this portion.
In January last year, the Executive Committee of the National Economic Council (ECNEC) approved Tk 4.47 billion more for the entire project, raising the cost by almost 58 percent in its third extension.
Planning Minister AHM Mustafa Kamal told the media at the time that the estimated cost of the project went up to Tk 12.19 billion from Tk 7.72 billion, which was estimated when the project was initiated in 2011.
The deadline to finish the project is June this year now.