**Summary of NHAI Contract Award for Four-Laning of Gudebellur to Mahabubnagar Section (NH-167)**
**Project Overview and Financials**
The National Highways Authority of India (NHAI) has issued a Letter of Award (LOA) to M/s KNR Constructions Limited for the four-laning of the Gudebellur to Mahabubnagar section of NH-167 in Telangana. The project, valued at Rs. 1,734 Crores, will be executed under the Hybrid Annuity Mode (HAM). Approved by the Cabinet Committee on Economic Affairs (CCEA) in February 2026, the 80 km long project is a critical component of the Hyderabad–Panaji Economic Corridor.
**Technical Specifications and Infrastructure**
The implementation involves significant infrastructure development to ensure smooth transit, including:
* **Bridges and Culverts:** Construction of 5 major bridges, 36 minor bridges, and 260 culverts.
* **Underpasses and Crossings:** 11 vehicular underpasses, 22 Light Vehicular Underpasses (LVUP), and one Railway Over Bridge/Railway Under Bridge (RoB/RUB).
* **Road Network:** 48 km of service roads and a 56 km long slip road.
**Strategic Impact and Multimodal Integration**
The project aims to alleviate significant travel delays in densely populated areas, including Gudebellur, Magnoor, Makthal, Marikal, Devarkadra, Jaklair, Yeligandla, and Banderpally. Upon completion, the upgrade will:
* **Strengthen Multimodal Integration:** Link three PM Gati Shakti economic nodes, nine social nodes, and seven logistics nodes.
* **Enhance Industrial Connectivity:** Improve access to Hyderabad’s commercial centers, the Hyderabad–Bengaluru NICDC corridor, pharmaceutical and medical clusters, and Special Economic Zones (SEZs).
* **Improve Regional Access:** Connect major hubs such as Mahabubnagar, Narayanpet, Raichur, Devarkadra, Makthal, and Hyderabad, while facilitating travel to religious and tourist destinations.
**Administrative Details**
* **Release ID:** 2246440
* **Posting Date:** 28 MAR 2026, 4:25 PM
* **Issuing Authority:** Ministry of Road Transport & Highways / PIB Delhi
* **Internal Reference:** GDH/HJ
Key Entities Referenced
NHAI (National Highways Authority of India): The primary executing authority responsible for awarding the contract and overseeing the four-laning of the NH-167 section.
NH-167 (Gudebellur to Mahabubnagar Section, Telangana): The specific highway infrastructure project and geographic location targeted for development to improve regional connectivity.
Hybrid Annuity Mode (HAM): The financial and contractual model under which the highway project was awarded and will be implemented.
PM Gati Shakti: The national initiative for multimodal integration that this project aims to support by linking economic and logistics nodes.
Hyderabad–Panaji Economic Corridor: The broader infrastructure framework and economic corridor of which this highway section is a constituent part.
Ministry of Road Transport & Highways
NHAI Awards Contract for Four Laning of
Gudebellur to Mahabubnagar Section of NH-167
in Telangana
Posted On: 28 MAR 2026 4:25PM by PIB Delhi
NHAI has issued Letter of Award (LOA) for the Four Laning of Gudebellur to Mahabubnagar Section of
NH-167 in Telangana. The project has been awarded to M/s KNR Constructions Limited for an amount of
Rs. 1,734 Crores on Hybrid Annuity Mode (HAM). The 80 km long project is a part of the Hyderabad–
Panaji Economic Corridor and was approved by the Cabinet Committee on Economic Affairs (CCEA) in
February 2026.
The implementation of the project includes construction of five major bridges, 36 minor bridges, 260
culverts, 11 vehicular underpass, 22 LVUP, one RoB/RUB, service roads of length 48 km and a 56 km
long slip road.
The Gudebellur–Mahabubnagar section of National Highway 167 currently faces significant travel delays
particularly in densely populated towns and villages such as Gudebellur, Magnoor, Makthal, Marikal,
Devarkadra, Jaklair, Yeligandla and Banderpally. The upgrade to a four-lane standard will ease traffic
bottlenecks, improve road safety and ensure smoother freight and passenger movement.
Once completed, the project will also help to strengthen multimodal integration by linking three PM Gati
Shakti economic nodes, nine social nodes and seven logistics nodes. It will also improve connectivity to
Hyderabad’s industrial and commercial centres, including the Hyderabad–Bengaluru NICDC corridor,
pharmaceutical and medical clusters and Special Economic Zones (SEZs).
The four lane National Highway will connect major cities and towns such as Mahabubnagar, Narayanpet,
Raichur, Devarkadra, Makthal and Hyderabad, while facilitating access to religious and tourist
destinations in the region.
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GDH/HJ
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