The Udhampur-Srinagar-Baramulla Rail Link Project (USBRL) is one of the most important Indian projects having the aim to connect the Kashmir valley to the whole Indian transportation network. The T-74R Tunnel belongs to the Udhampur to Quazigund Section, the more difficult portion of the USBRL. Due to the difficulties encountered during the excavation of the tunnels T-67, T-68, T-73 and T-74 (poor geotechnical conditions related to landslide phenomena and crossing fault) a completely new underground alignment has been studied: the T-74R. This tunnel, approx 8.6 km long, connects Katra portal of the old Tunnel T-67 to the Srinagar portal of T-74. The tunnel will be excavated by means of NATM between the right side of the Bishlari river valley and the last 5 km of the left hillside of its tributary, the valley of the Mahumangat Nalla. As regards cross section and general reference layout, four alternative solutions have studied and compared. Considering the construction, the safety and economical aspects, a single tube - single track tunnel including pedestrian, escape way, safety parallel escape tunnel and intermediate adit was adopted. This paper deals with the methods used in selecting the tunnel cross section and its lay-out, the applied design criteria and the characteristics ot the main tunnel for T-74R.