The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, yesterday has approved the Widening of National Highway-167 from Gudebellur to Mahabubnagar on the Hyderabad-Panaji Economic Corridor to 4-Lane Standard in Telangana with a Total Project Length of 80.01 km and Total Capital Cost of Rs.3175.08 crore on Hybrid Annuity Mode (HAM) under NH (O) scheme.

Currently, connectivity between Gudebellur to Mahabubnaagr on existing National Highway NH-167 experience significant travel time delay due to very poor geometry and traffic congestion at town area, passing through highly urbanized towns/villages i.e Gudebellur, Magnoor, Makthal, Marikal, Devarkadra, Jaklair, Yeligandla, and Banderpally. To address these challenges, the project is proposed to be developed as 4 lane standard. The project will provide significant benefit to Narayanpet & Mahabubnagar districts in the state of Telangana. This will enhance the efficiency of freight movement, reducing logistics cost and driving socio-economic growth in the region.

The project alignment integrates with 2 major National Highways (NH-150 & NH-167N) providing seamless connectivity to key economic, social, and logistics nodes across Telangana. Additionally, the upgraded corridor will enhance multi-modal integration and seamless connectivity by provide connectivity to three PM GatiShakti Economic Nodes, nine Social Nodes and seven Logistic Nodes thereby facilitating faster movement of goods and passengers across the region.

Upon completion, the NH-167 upgradation work will play a pivotal role in regional economic growth, strengthening connectivity between major religious and economic centers and opening new avenues for trade and industrial development. The proposed access-controlled 4-lane project with the length of 80.01 km will thus generate close to 14.4 lakh person-days of direct employment and 17.9 lakh person-days of indirect employment. The project will also induce additional employment opportunities due to increase in economic activity in the vicinity of the proposed corridors.

Appendix - I: Project Details

Feature	Details
Project Name	Widening of National Highway-167 from Gudebellur to Mahabubnagar on the Hyderabad-Panaji Economic Corridor to 4-Lane Standard in the State of Telangana with a Total Project Length of 80.01 km and Total Capital Cost of Rs.3175.08 crore on Hybrid Annuity Mode (HAM) under NH (O) scheme
Corridor	Gudebellur – Mahabubnagar section of Hyderabad – Panaji Economic Corridor
Length (km)	80.01 (including bypass & realignments over 36.8 km)
Total Civil Cost including Utility Shifting (Rs Cr.)	1868.90
Cost of Pre-construction Activities (LA Cost + Other Cost)	459.11
Total Capital Cost (Rs Cr.)	3175.08
Mode	Hybrid Annuity Mode(HAM)
Major Roads Connected	National Highways – NH-150 & NH-167N
Economic / Social / Transport Nodes Connected	Economic Nodes: NICDC : Hyderabad – Bangalore NICDC Pharma & Medical cluster- Hyderabad SEZs in Hyderabad Social Nodes: Aspiration district – Raichur, Many tourist & Religious places Logistic Nodes: Airport -1 No. (Hyderabad) Railway stations:4 Nos. MMLPs : 2 Nos.
Major Cities / Towns Connected	Mahabubnagar, Narayanpet, Raichur, Devarkadra, Makthal & Hyderabad etc.,
Employment Generation Potential	14.4 lakh person-days of direct employment and 17.9 lakh person-days of indirect employment
Annual Average Daily Traffic (AADT) in FY-24-25	Estimated at 17,991 Passenger Car Units (PCU)

 

Highway widening approval advances NH 167 to four lanes under Hybrid Annuity Mode, enhancing regional connectivity and employment. The Cabinet approved widening NH 167 from Gudebellur to Mahabubnagar to a four lane access controlled standard over 80.01 km on Hybrid Annuity Mode (HAM) under the NH (O) scheme, covering bypasses, realignments and utility shifting. The alignment connects with NH 150 and NH 167N and links multiple economic, social and logistic nodes, aiming to reduce congestion and travel time, enhance freight efficiency and multimodal integration, and generate substantial direct and indirect construction period employment.