Date: 2026-02-14Category: Press ReleaseState: Union GovernmentCountry: India
Cabinet approves the Widening of National Highway-167 from Gudebellur to Mahabubnagar on the Hyderabad-Panaji Economic Corridor to 4-Lane Standard in Telangana with a Total Project Length of 80.01 km and Total Capital Cost of Rs.3175.08 crore
**Executive Summary**
The Cabinet Committee on Economic Affairs has approved the widening of National Highway-167 from Gudebellur to Mahabubnagar on the Hyderabad-Panaji Economic Corridor in Telangana. The project will upgrade the highway to a 4-lane standard, covering a total length of 80.01 km with a total capital cost of Rs. 3175.08 crore under the Hybrid Annuity Mode (HAM) and NH (O) scheme. The project aims to improve connectivity, reduce travel time, and stimulate economic growth in the region.
**Key Points / Main Content**
* **Project Overview:**
* Widening of National Highway-167 (NH-167) from Gudebellur to Mahabubnagar in Telangana.
* Upgrading to 4-Lane Standard.
* Total project length: 80.01 km.
* Total Capital Cost: Rs. 3175.08 crore.
* Mode: Hybrid Annuity Mode (HAM) under NH (O) scheme.
* **Purpose & Benefits:**
* Addresses significant travel time delays and traffic congestion in town areas due to poor geometry.
* Enhances freight movement efficiency and reduces logistics costs.
* Drives socio-economic growth in Narayanpet & Mahabubnagar districts of Telangana.
* Integrates with major National Highways (NH-150 & NH-167N) for seamless connectivity.
* Enhances multi-modal integration by providing connectivity to PM GatiShakti Economic, Social, and Logistic Nodes.
* Strengthens connectivity between major religious and economic centers.
* Opens new avenues for trade and industrial development.
* **Economic Impact:**
* Generates approximately 14.4 lakh person-days of direct employment.
* Generates approximately 17.9 lakh person-days of indirect employment.
* Induces additional employment opportunities due to increased economic activity.
* **Route Details**
* Corridor: Gudebellur â Mahabubnagar section of Hyderabad â Panaji Economic Corridor
* Major Roads Connected: National Highways â NH-150 & NH-167N
* Annual Average Daily Traffic (AADT) in FY-24-25: Estimated at 17,991 Passenger Car Units (PCU)
* Major Cities / Towns Connected: Mahabubnagar, Narayanpet, Raichur, Devarkadra, Makthal & Hyderabad
**Impact Analysis**
**Telangana State and its Residents**
* **Impact:** Improved connectivity and reduced travel time between Gudebellur and Mahabubnagar, leading to socio-economic benefits and growth in the Narayanpet & Mahabubnagar districts, facilitating faster movement of goods and people.
* **Action Required:** None explicitly stated, but stakeholders likely need to prepare for potential disruptions during construction.
**Businesses in Telangana**
* **Impact:** Increased freight movement efficiency and reduced logistics costs; access to improved infrastructure, facilitating trade and industrial development.
* **Action Required:** None explicitly stated, but businesses should plan for potential expansion or new opportunities arising from improved connectivity.
**Central Government (Ministry of Road Transport & Highways)**
* **Impact:** Successful execution of the project would contribute to the development of the Hyderabad-Panaji Economic Corridor.
* **Action Required:** Oversight and monitoring of the project to ensure timely and efficient completion within budget and adherence to quality standards.
Key Entities Referenced
Cabinet Committee on Economic Affairs: The committee that approved the widening project, indicating a significant economic decision.
National Highway-167: The highway to be widened, central to the infrastructure project.
Hybrid Annuity Mode (HAM): The financing scheme under which the project is implemented.
Hyderabad-Panaji Economic Corridor: The broader economic corridor to which the highway is a part.
Telangana: The state where the project is located.
Cabinet Committee on Economic Affairs (CCEA)
Cabinet approves the Widening of National
Highway-167 from Gudebellur to Mahabubnagar
on the Hyderabad-Panaji Economic Corridor to
4-Lane Standard in Telangana with a Total
Project Length of 80.01 km and Total Capital
Cost of Rs.3175.08 crore
Posted On: 14 FEB 2026 1:00PM by PIB Delhi
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi,
yesterday has approved the Widening of National Highway-167 from Gudebellur to Mahabubnagar on the
Hyderabad-Panaji Economic Corridor to 4-Lane Standard in Telangana with a Total Project Length of
80.01 km and Total Capital Cost of Rs.3175.08 crore on Hybrid Annuity Mode (HAM) under NH (O)
scheme.
Currently, connectivity between Gudebellur to Mahabubnaagr on existing National Highway NH-167
experience significant travel time delay due to very poor geometry and traffic congestion at town area,
passing through highly urbanized towns/villages i.e Gudebellur, Magnoor, Makthal, Marikal, Devarkadra,
Jaklair, Yeligandla, and Banderpally. To address these challenges, the project is proposed to be developed
as 4 lane standard. The project will provide significant benefit to Narayanpet & Mahabubnagar districts in
the state of Telangana. This will enhance the efficiency of freight movement, reducing logistics cost and
driving socio-economic growth in the region.
The project alignment integrates with 2 major National Highways (NH-150 & NH-167N) providing
seamless connectivity to key economic, social, and logistics nodes across Telangana. Additionally, the
upgraded corridor will enhance multi-modal integration and seamless connectivity by provide
connectivity to three PM GatiShakti Economic Nodes, nine Social Nodes and seven Logistic Nodes
thereby facilitating faster movement of goods and passengers across the region.
Upon completion, the NH-167 upgradation work will play a pivotal role in regional economic growth,
strengthening connectivity between major religious and economic centers and opening new avenues for
trade and industrial development. The proposed access-controlled 4-lane project with the 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 increase in
economic activity in the vicinity of the proposed corridors.Appendix - I: Project Details
Feature Details
Project Name Widening of National Highway-167 from Gudebellur to
Mahabubnagar on the Hyderabad-Panaji Economic Corridor to
4-Lane Standard in the State of Telangana with a Total Project
Length of 80.01 km and Total Capital Cost of Rs.3175.08 crore
on Hybrid Annuity Mode (HAM) under NH (O) scheme
Corridor Gudebellur â Mahabubnagar section of Hyderabad â Panaji
Economic Corridor
Length (km) 80.01 (including bypass & realignments over 36.8 km)
Total Civil Cost including Utility 1868.90
Shifting (Rs Cr.)
Cost of Pre-construction Activities 459.11
(LA Cost + Other Cost)
Total Capital Cost (Rs Cr.) 3175.08
Mode Hybrid Annuity Mode (HAM)
Major Roads Connected National Highways â NH-150 & NH-167NEconomic / Social / Transport Nodes Economic Nodes:
Connected
NICDC : Hyderabad â Bangalore NICDC
Pharma & Medical cluster- Hyderabad
SEZs in Hyderabad
Social Nodes:
Aspiration district â Raichur, Many tourist & Religious places
Logistic Nodes:
Airport -1 No. (Hyderabad)
Railway stations:4 Nos.
MMLPs : 2 Nos.
Major Cities / Towns Connected Mahabubnagar, Narayanpet, Raichur, Devarkadra, Makthal &
Hyderabad etc.,
Employment Generation Potential 14.4 lakh person-days of direct employment and 17.9 lakh
person-days of indirect employment
Annual Average Daily Traffic Estimated at 17,991 Passenger Car Units (PCU)
(AADT) in FY-24-25
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