Date: 2026-07-15Category: Press ReleaseState: Union GovernmentCountry: India
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**
The Cabinet Committee on Economic Affairs has approved the development of a 43.218 km elevated corridor in Uttar Pradesh at a total capital cost of Rs. 10,998.32 crore. Announced on July 15, 2026, the project aims to decongest Varanasi city by connecting NH-31 to the Varanasi Ring Road. Implemented by the National Highways Authority of India (NHAI) under the Hybrid Annuity Model, the corridor is expected to halve travel times and improve regional multimodal integration.
**Key Points / Main Content**
**Project Scope and Infrastructure**
* Development of a 43.218 km Link/Connector Corridor connecting NH-31 and the Varanasi Ring Road along the River Varuna.
* The project features a 6/4-lane predominantly elevated corridor including a main carriageway, flyovers, loops, ramps, and service roads.
* Construction will be managed by NHAI under the Hybrid Annuity Model (HAM).
**Financial Breakdown**
* Total Capital Cost: Rs. 10,998.32 crore.
* Civil Construction Cost: Rs. 4,565.33 crore.
* Land Acquisition Cost: Rs. 934.91 crore.
**Operational Efficiency**
* Designed for operating speeds of 80–100 km/h.
* Reduction of travel time between NH-31 and Kashi Railway Station from 40 minutes to 20 minutes (a 50% reduction).
* Aims to lower vehicle operating costs and improve road safety through an access-controlled urban transport system.
**Connectivity and Strategic Integration**
* Provides seamless connectivity to Varanasi Airport, Kashi Railway Station, Varanasi Junction, Ramnagar Port, and the Chandauli region.
* Aligns with the PM Gati Shakti National Master Plan by connecting one Economic Node (Chandauli Social Economic Zone), one Social Node (Chandauli), and six Logistics Nodes.
* Facilitates the movement of agricultural produce, industrial goods, minerals, and construction materials across eastern Uttar Pradesh.
**Impact Analysis**
**Commuters and Residents of Varanasi**
**Impact**
They will experience significantly reduced travel times, decreased traffic congestion, and improved road safety within the city’s road network.
**Action Required**
N/A (Beneficiaries of improved infrastructure).
**National Highways Authority of India (NHAI)**
**Impact**
Assigned as the primary implementation agency responsible for the project's execution under the Hybrid Annuity Model.
**Action Required**
Oversee civil construction, manage land acquisition, and ensure the project meets the specified technical and financial parameters.
**Logistics and Industrial Sector**
**Impact**
Improved efficiency in the transport of freight, including industrial and agricultural goods, via enhanced integration with major logistics nodes.
**Action Required**
Utilize the new corridor to streamline supply chains and reduce transport costs in the eastern Uttar Pradesh region.
**Tourism Sector and Visitors**
**Impact**
Enhanced access to cultural sites such as the ghats of Varanasi and Sampurnanand Sanskrit University, promoting local tourism.
**Action Required**
N/A (Beneficiaries of improved accessibility).
Key Entities Referenced
National Highways Authority of India (NHAI): The agency responsible for implementing the 43.218 km elevated corridor project in Uttar Pradesh.
PM Gati Shakti National Master Plan: The national framework for multimodal integration and infrastructure connectivity that this project aligns with.
Hybrid Annuity Model (HAM): The specific financial and implementation model used for the development of the corridor project.
Varanasi Decongestion Plan: The strategic regional initiative for which this corridor serves as a major component to improve urban transit.
Varanasi and Chandauli, Uttar Pradesh: The primary geographic locations central to the project's scope, connectivity improvements, and economic nodes.
Cabinet Committee on Economic Affairs (CCEA)
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
प्रव तथ: 15 JUL 2026 3:04PM by PIB Delhi
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:***
MJPS
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