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

**Executive Summary** On 15 July 2026, the Cabinet Committee on Economic Affairs approved the development of a 43.218 km, 6/4-lane elevated corridor along the Varuna River in Uttar Pradesh at a total cost of Rs.10,998.32 crore. Implemented by the National Highways Authority of India (NHAI) under the Hybrid Annuity Model, the project aims to decongest Varanasi and halve travel time between NH-31 and Kashi Railway Station. This strategic initiative aligns with the PM Gati Shakti National Master Plan to enhance regional connectivity and multimodal transport integration. **Key Points / Main Content** **Project Scope and Infrastructure** * **Dimensions:** Development of a 43.218 km Link/Connector Corridor connecting NH-31 and the Varanasi Ring Road. * **Structure:** A predominantly elevated 6/4-lane corridor featuring a main carriageway, flyovers, loops, ramps, and service roads. * **Operational Capacity:** Designed for operating speeds of 80–100 km/h. **Financial and Implementation Framework** * **Total Capital Cost:** Rs.10,998.32 crore. * **Cost Breakdown:** Civil construction accounts for Rs.4,565.33 crore, while land acquisition is estimated at Rs.934.91 crore. * **Execution Model:** The project will be implemented by NHAI using the Hybrid Annuity Model (HAM). **Transport and Connectivity Goals** * **Decongestion:** Serves as a primary component of the Varanasi Decongestion Plan to reduce urban traffic pressure. * **Travel Efficiency:** Expected to reduce travel time from NH-31 to Kashi Railway Station from 40 minutes to 20 minutes (a 50% reduction). * **Seamless Integration:** Provides improved access to Varanasi Airport, multiple railway stations (including Kashi, Varanasi City, and DDU Junction), Ramnagar Port, and the Varanasi ghats. **Regional and Economic Development** * **Strategic Alignment:** Integrated with the PM Gati Shakti National Master Plan to improve multimodal transport. * **Logistics Support:** Connects to one Economic Node (Chandauli Social Economic Zone), one Social Node, and six major Logistics Nodes. * **Economic Impact:** Facilitates the movement of agricultural produce, industrial goods, and minerals to support growth across eastern Uttar Pradesh. **Impact Analysis** **NHAI (National Highways Authority of India)** **Impact** As the implementing agency, NHAI is responsible for the execution of a high-capital project involving complex elevated construction and significant land acquisition. **Action Required** Manage the procurement, civil construction, and land acquisition processes under the Hybrid Annuity Model framework. **Commuters and Residents of Varanasi/Chandauli** **Impact** Users will experience a 50% reduction in travel time on key routes, improved road safety, and lower vehicle operating costs due to reduced congestion. **Action Required** Adapt to changes in the urban transport network and utilize the new access-controlled corridor for more efficient transit. **Industrial and Agricultural Sectors** **Impact** Businesses involved in logistics, minerals, and agricultural produce will benefit from faster, uninterrupted movement of freight and enhanced connectivity to logistics nodes. **Action Required** Incorporate the new corridor and its associated logistics nodes into supply chain and distribution planning to improve efficiency. **Tourism and Public Institutions** **Impact** Enhanced access to the Varanasi ghats, Sampurnanand Sanskrit University, and regional transit hubs will likely increase visitor influx and improve local quality of life. **Action Required** Prepare for increased accessibility and potential growth in tourism-related activities resulting from improved urban connectivity.

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