The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the widening of National Highway-167 from Gudebellur to Mahabubnagar to four-lane standards in Telangana at a total capital cost of ₹3,175.08 crore.
The 80.01-km project, part of the Hyderabad–Panaji Economic Corridor, will be implemented under the Hybrid Annuity Mode (HAM) through the NH (O) scheme.
The Gudebellur–Mahabubnagar stretch of National Highway 167 currently faces significant travel delays due to poor road geometry and congestion, particularly in densely populated towns and villages such as Gudebellur, Magnoor, Makthal, Marikal, Devarkadra, Jaklair, Yeligandla and Banderpally.
The proposed upgrade to a four-lane standard, including bypasses and realignments spanning 36.8 km, is expected to ease traffic bottlenecks, improve road safety and ensure smoother freight and passenger movement. The project will primarily benefit Narayanpet and Mahabubnagar districts in Telangana.
The upgraded corridor will integrate with two major national highways – NH-150 and NH-167N – enhancing seamless connectivity across key economic and logistics hubs in the state.
The CCEA said the project will 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 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.
The project is expected to generate approximately 14.4 lakh person-days of direct employment and 17.9 lakh person-days of indirect employment during construction. Additional job opportunities are anticipated due to increased economic activity along the corridor.
The Annual Average Daily Traffic (AADT) for FY 2024–25 on the stretch is estimated at 17,991 Passenger Car Units (PCU), indicating strong traffic demand and the need for capacity expansion.
Of the total project cost of ₹3,175.08 crore, the civil cost including utility shifting is estimated at ₹1,868.90 crore, while pre-construction activities, including land acquisition and related expenses, account for ₹459.11 crore.
