The IL&Fs financial crisis has cast a shadow over two high-profile tunnel projects in Jammu and Kashmir - the Zoji-La and Z-Morh. The government may issue a notice to IL&FS Transportation Networks Limited (ITNL) for stopping construction work in those sites, said people familiar with the matter.

The government will ask ITNL the reasons for suspending operations and about the timeline of completing these projects, the sources said. So far, only preliminary work has been completed in the Zoji-La project and about 40 percent work is done at Z-Morh tunnel.

However, if ITNL fails to provide a solid plan soon then the government may also look at re-tendering these projects by March.