Hyderabad Elevated Corridors Get Major Boost as NDB Funds ₹5,106 Crore Traffic Relief Plan

Hyderabad is set for a major urban mobility upgrade as the Shanghai-headquartered New Development Bank (NDB) prepares to back two key elevated corridor projects aimed at easing traffic pressure in some of the city's busiest stretches. Both proposed corridors will originate from Paradise Junction in Secunderabad and are expected to improve connectivity towards northern parts of the city and beyond.

Two elevated corridors to begin from Paradise Junction

According to the project plan, both elevated corridors will start from Paradise Junction in Secunderabad. One of the stretches will extend towards Shamirpet on the Outer Ring Road through Rajiv Rahadari (SH-01), while the second corridor will provide a link to Dairy Farm Road on NH-44.

The twin-corridor plan is being positioned as a major intervention to reduce congestion in Hyderabad's core urban zones, especially along heavily used commuter routes that witness frequent bottlenecks.

Project cost pegged at ₹5,106 crore, NDB to fund 70%

The total estimated cost of the two corridor projects has been placed at ₹5,106 crore. Out of this, the New Development Bank will provide ₹3,574 crore, accounting for 70% of the total project cost.

The remaining 30% share will be borne by the state government, which is expected to contribute ₹1,532 crore. Official sources said the Telangana government is expected to sign a formal agreement with the bank soon to move the funding arrangement forward.

The state government has already granted administrative sanction for the project. It has earmarked ₹3,619 crore for the corridor running towards Shamirpet along SH-01, while ₹1,487 crore has been allocated for the corridor connecting to Dairy Farm Road on NH-44.

Land acquisition and construction costs outlined in project proposal

As per the preliminary project proposal report (PPR), a substantial share of the project outlay will go towards land acquisition and civil works.

For the SH-01 corridor to Shamirpet, land acquisition is expected to cost ₹1,565.65 crore, while the estimated construction cost stands at ₹2,232.89 crore.

For the NH-44 corridor towards Dairy Farm Road, land acquisition is projected at ₹375.03 crore, and the construction component is estimated at ₹652.08 crore.

Officials have also been authorised to upload the PPR on the NITI Aayog platform, which is a necessary step for processing the proposal with the Centre and the NDB. Sources said the bank has already expressed interest in extending financial support for the project.

NDB teams completed fact-finding and final appraisal visits

The funding proposal has already gone through multiple rounds of assessment by the New Development Bank.

An NDB fact-finding mission visited Hyderabad on November 17 and 18, 2025, to examine the project on the ground. This was followed by a final appraisal visit on January 19, 2026, when a nine-member team from the bank's Shanghai and India offices carried out a detailed review.

Officials said the proposed loan is expected to come at a lower interest rate than commercial borrowing options available in India, making it a more economical funding route for the state.

With administrative approval already in place and appraisal steps completed, the elevated corridor plan appears to be moving closer to formal execution, potentially offering long-term relief for Hyderabad's growing traffic burden.