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 approved the widening of National Highway-167 from Gudebellur to Mahabubnagar on the Hyderabad-Panaji Economic Corridor. The project aims to upgrade the highway to a 4-lane standard in Telangana, covering a total project 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 decision was announced on February 14, 2026.
**Key Points / Main Content**
* **Project Overview:**
* Widening of NH-167 from Gudebellur to Mahabubnagar.
* Upgrading to 4-lane standard in Telangana.
* Total project length: 80.01 km.
* Total capital cost: Rs. 3175.08 crore.
* Implementation via Hybrid Annuity Mode (HAM) under NH (O) scheme.
* **Project Justification:**
* Addresses travel time delays and traffic congestion on existing NH-167.
* Improves connectivity between Narayanpet & Mahabubnagar districts.
* Enhances freight movement efficiency and reduces logistics costs.
* Drives socio-economic growth in the region.
* **Connectivity and Integration:**
* Integrates with NH-150 & NH-167N.
* Provides seamless connectivity to economic, social, and logistics nodes.
* Connects to three PM GatiShakti Economic Nodes, nine Social Nodes, and seven Logistic Nodes.
* Facilitates faster movement of goods and passengers.
* **Expected Benefits:**
* Regional economic growth.
* Strengthened connectivity between religious and economic centers.
* New avenues for trade and industrial development.
* Employment generation: 14.4 lakh person-days of direct employment and 17.9 lakh person-days of indirect employment.
* **Project Costs:**
* Total Civil Cost (including Utility Shifting): Rs. 1868.90 Cr.
* Cost of Pre-construction Activities: Rs. 459.11 Cr.
**Impact Analysis**
**Stakeholders:**
**Citizens of Telangana:**
* **Impact:** Improved connectivity, reduced travel time, increased economic opportunities, and better access to social and economic centers.
* **Action Required:** No immediate action required, but can benefit from the improved infrastructure once completed.
**Businesses and Industries:**
* **Impact:** Enhanced freight movement, reduced logistics costs, and new avenues for trade and industrial development.
* **Action Required:** No immediate action required, but should take into account the improved logistics and connectivity in their business planning.
**Government and Economy:**
* **Impact:** Boost to regional economic growth, employment generation, and overall infrastructure development in Telangana.
* **Action Required:** Oversee the implementation of the project, ensure timely completion, and monitor its impact on the regional economy.
Key Entities Referenced
National Highway-167: Key road infrastructure being widened and upgraded as part of this project.
Hybrid Annuity Mode (HAM): The financing mechanism for the NH-167 widening project.
Hyderabad-Panaji Economic Corridor: The broader infrastructure corridor within which the NH-167 widening project is situated.
Telangana: The state where the NH-167 widening project is located.
Cabinet Committee on Economic Affairs: The committee that approved the National Highway-167 widening project.
Ministry of Road Transport & Highways
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 1:37PM 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 – Mahabubnagar section of Hyderabad – 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 – NH-150 & NH-167NEconomic / Social / Transport Nodes Economic Nodes:
Connected
NICDC : Hyderabad – Bangalore NICDC
Pharma & Medical cluster- Hyderabad
SEZs in Hyderabad
Social Nodes:
Aspiration district – 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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