Big Connectivity Push For Hyderabad As Centre Clears ₹3,175 Crore NH-167 4-Lane Widening Project

The Centre has sanctioned a major highway expansion project in Telangana, with the Union Cabinet giving the green signal to widen National Highway-167 between Gudebellur and Mahabubnagar to four lanes.

The project carries an estimated cost of ₹3,175.08 crore and is part of efforts to strengthen connectivity along the Hyderabad-Panaji Economic Corridor, according to an official Press Information Bureau release issued on Saturday.

Route, length and implementation plan

The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi cleared the 80.01-km access-controlled corridor under the Hybrid Annuity Mode (HAM). The Ministry of Road Transport and Highways said the present stretch suffers from slow traffic movement because of weak road geometry and heavy congestion, especially in built-up areas.

The alignment currently passes through several urbanised locations including Gudebellur, Magnoor, Makthal, Marikal, Devarkadra, Jaklair, Yeligandla and Banderpally. Upgrading the route is expected to significantly reduce travel time and improve traffic flow.

The improved highway will directly link with two key national highways, NH-150 and NH-167N, creating smoother regional movement across Telangana.

Connectivity to economic and social hubs

Officials stated that the upgraded corridor will strengthen access to multiple activity centres across the state. The route is set to connect three PM GatiShakti Economic Nodes, nine social nodes and seven logistics nodes, improving the transport of both goods and passengers.

Authorities believe Narayanpet and Mahabubnagar districts will benefit the most, as better freight movement and reduced logistics expenses are expected to support trade, industry and local economic activity.

Employment and regional development impact

The government estimates substantial job creation during construction and after completion. The project is expected to generate around 14.4 lakh person-days of direct employment and about 17.9 lakh person-days of indirect employment.

"Upon completion, the NH-167 upgradation work will play a pivotal role in regional economic growth, strengthening connectivity between major religious and economic centres and opening new avenues for trade and industrial development. The proposed access-controlled 4-lane project with a 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 an increase in economic activity in the vicinity of the proposed corridors," the Ministry of Road Transport and Highways added.

With improved transport efficiency and faster logistics movement, the project is expected to enhance regional integration and support long-term development across southern Telangana.