Date: 2026-06-03Category: Press ReleaseState: Union GovernmentCountry: India
Cabinet approves the widening of the Armoor-Jagtial-Mancherial Section of National Highway (NH)-63 on Hybrid Annuity Model (HAM) and the Jagtial-Karimnagar Section of National Highway (NH)–563 on Build-Operate-Transfer (Toll) (BOT (Toll)) to the 4-Lane Standard in Telangana with a Total Project Length of 190.76 km and cost of Rs.7597.16 crore
**Executive Summary**
The Cabinet Committee on Economic Affairs has approved the 4-lane widening of 190.76 km of National Highways (NH-63 and NH-563) in Telangana at a total cost of Rs. 7,597.16 crore. The projects, which utilize both Hybrid Annuity and Build-Operate-Transfer models, are designed to alleviate severe congestion and improve regional mobility across four districts. Construction is slated for a 2.5-year period, aiming to significantly reduce travel times and support the PM GatiShakti national logistics framework.
**Key Points / Main Content**
* **Project Scope and Infrastructure Models**
* Widening of the Armoor-Jagtial-Mancherial section (NH-63) to 4-lane standards using the Hybrid Annuity Model (HAM).
* Widening of the Jagtial-Karimnagar section (NH-563) to 4-lane standards using the Build-Operate-Transfer (Toll) [BOT (Toll)] model.
* Total project length covers 190.76 km divided into three work packages.
* Total combined capital cost is sanctioned at Rs. 7,597.16 crore.
* **Technical Specifications and Efficiency**
* The upgraded highways will support a design speed of 100 km/hour.
* Integration of bypasses around built-up areas and the implementation of open tolling.
* Expected reduction in travel time: 1 hour and 30 minutes between Armoor and Mancherial; 45 minutes between Jagtial and Karimnagar.
* Projected environmental and economic benefits include reduced fuel consumption, lower carbon emissions, and decreased vehicle operating costs (VOC).
* **Strategic and Economic Connectivity**
* Alignment with PM GatiShakti principles to improve the national Logistic Performance Index (LPI).
* Direct connection of five Economic Nodes (including SEZs in Siddipet and Warangal), seven Social Nodes (such as Vemulawada and Nagunur Fort), and ten Logistic Nodes (major Railway Stations).
* Estimated employment generation of 34.43 lakh direct man-days and 42.7 lakh indirect man-days.
* **Financial and Timeline Details**
* **NH-63 Sections:** 17.5-year concession period (2.5 years construction + 15 years O&M).
* **NH-563 Section:** 20-year concession period (including 2.5 years construction).
* Total civil costs vary by section, ranging from approximately Rs. 1,266 crore to Rs. 1,477 crore per package.
**Impact Analysis**
**Commuters and Freight Operators**
* **Impact:** Users will experience significantly faster travel, reduced congestion in built-up areas, and lower vehicle wear and tear.
* **Action Required:** Transition to using bypasses and the new 4-lane configuration; comply with the open tolling system requirements.
**Local Workforce and Job Seekers**
* **Impact:** Creation of over 77 lakh total man-days of employment (direct and indirect) during the development and maintenance phases.
* **Action Required:** Engage with construction and operation opportunities provided by the three work packages.
**Industrial and Economic Hubs (SEZs, Food Parks, and Logistics Nodes)**
* **Impact:** Enhanced supply chain efficiency and better access to markets for SEZs in Siddipet and Warangal, as well as Mega Food Parks in Nizamabad.
* **Action Required:** Align logistics and distribution schedules to leverage improved connectivity and reduced transit times.
**Regional Districts (Nizamabad, Jagtial, Mancherial, and Karimnagar)**
* **Impact:** Promotion of socio-economic development and improved accessibility to social nodes and heritage sites.
* **Action Required:** Local authorities must coordinate with project execution for land management and regional integration.
Key Entities Referenced
Cabinet Committee on Economic Affairs (CCEA): The primary decision-making body that approved the widening of highway sections and the associated capital investment.
National Highway (NH)-63 and NH-563 (Telangana): The specific road sections (Armoor-Jagtial-Mancherial and Jagtial-Karimnagar) undergoing 4-lane widening across four districts in Telangana.
PM GatiShakti: The national master plan for multimodal connectivity that guides the principles and integration of these highway projects.
Hybrid Annuity Model (HAM) and Build-Operate-Transfer (Toll): The specific public-private partnership (PPP) models utilized for the implementation and operation of the road projects.
Cabinet Committee on Economic Affairs (CCEA)
Cabinet approves the widening of the Armoor-
Jagtial-Mancherial Section of National Highway
(NH)-63 on Hybrid Annuity Model (HAM) and the
Jagtial-Karimnagar Section of National Highway
(NH)–563 on Build-Operate-Transfer (Toll) (BOT
(Toll)) to the 4-Lane Standard in Telangana with a
Total Project Length of 190.76 km and cost of
Rs.7597.16 crore
प्रव तथ: 03 JUN 2026 3:26PM by National
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, today
has approved the widening of the existing Armoor-Jagtial-Mancherial Section of National Highway
(NH)-63 on Hybrid Annuity Model (HAM) and Jagtial-Karimnagar Section of National Highway
(NH)-563 on Build-Operate-Transfer (Toll) [BOT (Toll)] to the 4-lane standard under three work packages
with a combined total length of 190.76 km and combined total capital cost of Rs.7597.16 crore.
The project section of Armoor-Jagtial-Mancherial passes through Nizamabad, Jagtial, and Mancherial
Districts of Telangana, facing severe congestion at present due to several built-up areas along the highway,
such as, Anksapoor, Korutla, Jagtial, Dharmapuri, Lakshettipet and Mancherial. Similarly, the Jagtial-
Karimnagar section passes through severely congested and heavily built-up places along the stretch, such
as, Jagtial, Potharam, Gangadhara and Karimnagar.
The instant projects are proposed to have a 4-lane configuration with bypasses to built-up areas with open
tolling, ensuring design speed of 100 km/hour and improved travel efficiency across the Districts of
Nizamabad, Jagtial, Mancherial and Karimnagar in the State of Telangana. The project will also enhance
regional mobility and promote socio-economic development.
The projects are in line with the PM GatiShakti principles and will connect five Economic Nodes, seven
Social Nodes and ten Logistic Nodes. This will have a positive impact on the Logistic Performance Index
(LPI) of the country.
Upon completion, travel time is expected to reduce by about 1 hour and 30 minutes between Armoor and
Mancherial and by about 45 minutes between Jagtial and Karimnagar, while providing safe, fast, and
uninterrupted connectivity for both passenger and freight traffic. Additionally, the project will result in
substantial reductions in fuel consumption, carbon emissions, and vehicle operating costs (VOC).
Map of CorridorAppendix - I: Project DetailsDescription Armoor- Jagtial Jagtial Mancherial Jagtial- Karimnagar
Section of NH-63 Section of NH-63 Section of NH-563
Length (km) 63.600 68.295 58.866
Brownfield length 17.95 2.05 24.14
(Km)
Greenfield Length 45.65 66.10 34.96
(Km)
Total Civil Cost (Rs 1266.58 1477.17 1455.01
Cr.)
Land and other Pre- 504.26 436.93 394.53
construction Cost (Rs
Cr.)
Total Capital Cost 2471.76 2730.72 2394.68
(Rs Cr.)
Mode Hybrid Annuity Model Hybrid Annuity Model Build-Operate-Transfer
(HAM) (HAM) (Toll) [BOT (Toll)]
Total Concession 17.5 years (2.5 years 17.5 years (2.5 years 20 years (including 2.5
Period construction + 15 years construction + 15 years years construction)
O&M) O&M)
Economic / Social Economic Nodes: 2 SEZ- Siddipet, Warangal Urban; Mega Food Parks-
Nodes Nizamabad, Siddipet; Fishing Seafood Cluster- Rajanna Sircilla.
Social Nodes: Vemulawada, Kondagattu, Nagunur Fort, Dharmapuri,
Kaleshwaram, Lower Mannair Dam, Quila Fort.
Logistic Nodes Railway Stations: Nizamabad, Railway Stations:, Lingampet/ Jagtial,
Lingampet/ jagtial, peddapalli, Poddur, Gangadhara, Karimnagar,
Korutla, Mancherial,
Employment 34.43 Lakhs Man-Days (direct) & 42.7 lakh Man-Days (indirect)
Generation Potential
Annual Average 14,949 PCU/day 12,084 PCU/day 20,446 PCU/day
Daily Traffic (AADT)
in FY-2024-25***
MJPS
(रलीज़ आईडी: 2268352) आगंतुक पटल : 3493
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