The bypass would avoid Pinjore, Kalka and Parwanoo towns that were the main bottleneck on National Highway 22, a spokesperson for the National Highways Authority of India (NHAI) told
He said the bypass would save on travelling time and distance.
Traffic snarls between Pinjore and Parwanoo were common.
A toll plaza has also been set up by the NHAI at Chandimandir, near Panchkula in Haryana, for using the bypass.
A car, jeep and van driver will have to pay Rs.23 per entry when crossing the plaza, whereas drivers of light transport vehicles comprising canters and mini trucks have to pay Rs.39 per entry. For trucks and buses, the entry fee is Rs.79.
Initially, the Parwanoo-Pinjore bypass was to be completed by August 2010.