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        News and Press Release

        Cabinet approves development of 6/4 lane Elevated Corridor along Varuna River Bank & its Ramps/Loops in Uttar Pradesh on Hybrid Annuity Model at total Capital Cost of Rs.10,998.32 Crore

        July 15, 2026

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        The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, today has approved the development of a 43.218 km Link/Connector Corridor connecting NH-31 and the Varanasi Ring Road along the River Varuna for decongestion of Varanasi city in Uttar Pradesh. The project comprises a 6/4-lane predominantly elevated corridor, including main carriageway, flyovers, loops, ramps and service roads, and will be implemented by the National Highways Authority of India (NHAI) under the Hybrid Annuity Model (HAM) at a total capital cost of Rs.10,998.32 crore, including a civil construction cost of Rs.4,565.33 crore and land acquisition cost of Rs.934.91 crore.

        The corridor is a major component of the Varanasi Decongestion Plan and will provide seamless connectivity between NH-31 and Kashi Railway Station, while substantially improving access to Varanasi Ring Road, Varanasi Airport, Kashi Railway Station, Varanasi City Railway Station, Varanasi Junction, Deen Dayal Upadhyaya Junction, Ramnagar Port, Sampurnanand Sanskrit University, the ghats of Varanasi and the adjoining Chandauli region.

        Designed for an operating speed of 80–100 km/h, the project will reduce travel time between NH-31 and Kashi Railway Station from approximately 40 minutes to 20 minutes, representing a reduction of nearly 50 per cent. It will significantly decongest the city’s road network, improve road safety, reduce vehicle operating costs and facilitate faster, uninterrupted movement of passenger and freight traffic.

        The project will also strengthen regional connectivity by improving access to one Economic Node (Chandauli Social Economic Zone), one Social Node (Chandauli) and six major Logistics Nodes, thereby enhancing multimodal integration in line with the PM Gati Shakti National Master Plan. It will facilitate efficient movement of agricultural produce, industrial goods, construction materials and minerals, improving logistics efficiency and supporting sustainable economic growth across eastern Uttar Pradesh.

        Overall, the project will create a modern, access-controlled urban transport corridor that enhances connectivity, strengthens multimodal transport integration, promotes tourism and economic development, and improves the quality of life for residents and visitors to Varanasi.

        Map of Corridor:

         

        Hybrid annuity corridor development advances urban decongestion, multimodal connectivity, safer travel and efficient passenger and freight movement. A predominantly elevated 6/4-lane link and connector corridor along the Varuna River Bank has been approved under the Hybrid Annuity Model. Comprising carriageways, flyovers, loops, ramps and service roads, it will connect NH-31 with the Varanasi Ring Road under the Varanasi Decongestion Plan. The corridor is intended to reduce congestion and travel time, improve safety and freight movement, and strengthen access to transport, economic, social and logistics nodes through multimodal integration.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Hybrid annuity corridor development advances urban decongestion, multimodal connectivity, safer travel and efficient passenger and freight movement.

                                A predominantly elevated 6/4-lane link and connector corridor along the Varuna River Bank has been approved under the Hybrid Annuity Model. Comprising carriageways, flyovers, loops, ramps and service roads, it will connect NH-31 with the Varanasi Ring Road under the Varanasi Decongestion Plan. The corridor is intended to reduce congestion and travel time, improve safety and freight movement, and strengthen access to transport, economic, social and logistics nodes through multimodal integration.





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