Centre clears Rs 3,175 cr NH-167 upgrade, approves key highway projects across 3 states

The approved projects underscore the Centre's push to modernise transport infrastructure, reduce logistics costs and generate employment while enhancing tourism and industrial connectivity across key regions.

• CCEA approves highway upgrades in Telangana, Gujarat, Maharashtra
• NH-167 in Telangana to be widened, boosting logistics and jobs
• NH-56 upgrade in Gujarat to cut travel time, aid tourism
• NH-160A expansion in Maharashtra to ease Nashik congestion

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The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a set of national highway expansion projects aimed at easing congestion, strengthening logistics networks and accelerating regional economic growth across Telangana, Gujarat and Maharashtra.

A Rs 3,175 crore NH-167 upgrade in Telangana

According to an official CCEA statement, the government has cleared the widening of the Gudebellur-Mahabubnagar stretch of National Highway-167 to a four-lane standard. The 80.01-km project forms part of the Hyderabad-Panaji Economic Corridor and will be executed under the Hybrid Annuity Mode (HAM) through the NH(O) scheme at a total capital cost of Rs 3,175.08 crore.

The cost includes Rs 1,868.90 crore towards civil works and utility shifting, and Rs 459.11 crore for land acquisition and other pre-construction activities. The stretch also includes 36.8 km of bypasses and realignments.

The Centre said the existing NH-167 section faces "significant travel time delay" due to poor road geometry and congestion in urbanised towns such as Gudebellur, Magnoor, Makthal, Marikal, Devarkadra, Jaklair, Yeligandla and Banderpally. The four-laning is aimed at improving freight efficiency and reducing logistics costs, particularly benefiting Narayanpet and Mahabubnagar districts in Telangana.

The corridor will integrate with two major highways, NH-150 and NH-167N, and connect key economic and logistics nodes, including the Hyderabad–Bengaluru NICDC corridor, pharma and medical clusters in Hyderabad, and multiple SEZs. It will also improve connectivity to one airport (Hyderabad), four railway stations and two Multi-Modal Logistics Parks (MMLPs).

The project is aligned with the PM GatiShakti framework and will link three Economic Nodes, nine Social Nodes and seven Logistics Nodes. With an estimated Annual Average Daily Traffic (AADT) of 17,991 Passenger Car Units (PCU) in FY25, the upgraded, access-controlled corridor is expected to strengthen connectivity between major religious and economic centres and spur trade and industrial development.

The government estimates the project will generate around 14.4 lakh person-days of direct employment and 17.9 lakh person-days of indirect employment, besides inducing additional economic activity along the corridor.

NH-56 four-laning to boost tourism in Gujarat

The Cabinet has also approved the upgradation of the Dhamasiya-Bitada/Movi and Nasarpore-Malotha stretches of National Highway-56 to four lanes, covering about 107.67 km.

The project is expected to significantly enhance access to the Statue of Unity and increase tourist footfall. The highway passes through the Aspirational District of Narmada and connects tribal regions, including Dahod, Chhota Udepur, Tapi and Bharuch.

Travel time on the corridor is projected to reduce by nearly 40%, from 2.5 hours to 1.5 hours, supported by a design speed of 100 kmph and average speeds of around 70 kmph. The upgrade is expected to generate 19.38 lakh direct job days and 22.82 lakh indirect job days, while stimulating economic activity in surrounding areas.

NH-160A upgrade to ease congestion in Maharashtra

In Maharashtra, the Cabinet has cleared the expansion of the Ghoti-Trimbak (Mokhada)-Jawhar-Manor-Palghar stretch of National Highway-160A. The move is aimed at addressing congestion in western Nashik, where rapid industrialisation has led to heavy freight movement through urban roads.

The upgraded alignment will provide bypass options and smoother transit for vehicles travelling from Mumbai and southern regions, easing pressure on city traffic. The project is aligned with PM GatiShakti principles and is expected to connect six Economic Nodes, one Social Node and eight Logistics Nodes, potentially improving India’s Logistics Performance Index (LPI).

With traffic projections exceeding 10,000 PCUs by 2028, the corridor is seen as critical to supporting long-term industrial and infrastructure growth.

Collectively, the approved projects underscore the Centre's push to modernise transport infrastructure, reduce logistics costs and generate employment while enhancing tourism and industrial connectivity across key regions.