New Delhi, Feb 14 (.) The Cabinet Committee on Economic Affairs has approved the widening of National Highway-167 from Gudebellur to Mahabubnagar to four-lane standards in Telangana, at a total capital cost of Rs 3,175.08 crore.
The 80.01-km project, part of the Hyderabad–Panaji Economic Corridor, will be implemented under the Hybrid Annuity Mode (HAM) through the NH (O) scheme, union Minister for Information and Broadcasting Ashwini Vaishnaw said on Saturday while briefing reporters on decisions taken at Friday’s Cabinet meeting.
“This project will significantly improve freight efficiency, reduce logistics costs and promote socio-economic development in the Narayanpet and Mahabubnagar districts,” Vaishnaw said.
The existing Gudebellur–Mahabubnagar stretch of NH-167 faces heavy congestion and long travel delays due to poor road geometry and bottlenecks in densely populated towns and villages, including Gudebellur, Magnoor, Makthal, Marikal, Devarkadra, Jaklair, Yeligandla and Banderpally.
The Minister said that the upgrade to four-lane standards, including bypasses and realignments covering 36.8 km of the stretch, will ease traffic flow and enhance road safety.
The Annual Average Daily Traffic (AADT) in FY 2024–25 on this corridor was estimated at nearly 17,991 Passenger Car Units (PCU), underlining the need for capacity augmentation.
The project alignment integrates with two major national highways- NH-150 and NH-167N – strengthening connectivity to key economic and logistics hubs across Telangana.
According to the government, the upgraded corridor will connect three PM GatiShakti economic nodes, nine social nodes and seven logistics nodes, improving multimodal integration.
Key economic nodes linked by the corridor include the Hyderabad–Bengaluru Industrial Corridor under the NICDC, pharmaceutical and medical clusters in Hyderabad, and several Special Economic Zones (SEZs). It will also improve access to Hyderabad airport, four railway stations and two Multi-Modal Logistics Parks (MMLPs).
Major cities and towns benefiting from the project include Mahabubnagar, Narayanpet, Raichur, Devarkadra, Makthal and Hyderabad.
The government said the highway expansion will generate approximately 14.4 lakh person-days of direct employment and 17.9 lakh person-days of indirect employment. Additional job opportunities are expected to arise from increased economic activity along the corridor.
“With improved connectivity between major economic and religious centres, the project will open new avenues for trade and industrial development,” Vaishnaw said.
The total civil cost of the project, including utility shifting, is estimated at Rs 1,868.90 crore, while pre-construction activities, including land acquisition, account for ₹459.11 crore.
Officials noted that the Hyderabad–Panaji Economic Corridor is a critical east-west linkage aimed at strengthening regional supply chains and reducing travel time across southern and western India.
The NH-167 upgradation is expected to play a key role in boosting regional economic growth and improving transportation efficiency in southern Telangana once completed. . SKA .