Cabinet Approves ₹3,175-Crore NH-167 Widening Project in Telangana Under HAM

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister NarendraModi, has approved the widening of National Highway-167 from Gudebellur to Mahabubnagar in Telangana. The 80.01-km stretch, part of the Hyderabad–Panaji Economic Corridor, will be upgraded to four-lane standards at an estimated cost of ₹3,175.08 crore under the Hybrid Annuity Mode (HAM) through the NH (O) scheme.

The existing NH-167 corridor currently faces significant travel delays due to poor road geometry and congestion in densely populated towns and villages, including Gudebellur, Magnoor, Makthal, Marikal, Devarkadra, Jaklair, Yeligandla and Banderpally. The four-laning project aims to address these bottlenecks and improve traffic flow across the region.

The upgraded highway is expected to deliver major connectivity benefits to Narayanpet and Mahabubnagar districts, strengthening freight efficiency, reducing logistics costs and supporting socio-economic growth in Telangana.

The project alignment will integrate with two key National Highways — NH-150 and NH-167N — ensuring seamless connectivity to major economic, social and logistics hubs. It will also link three PM GatiShakti economic nodes, nine social nodes and seven logistics nodes, enhancing multimodal connectivity and facilitating faster movement of goods and passengers.

Once completed, the NH-167 upgradation is expected to boost regional economic growth by improving access to key religious and commercial centres, while opening new avenues for trade and industrial development. The project is projected to generate around 14.4 lakh person-days of direct employment and 17.9 lakh person-days of indirect employment, along with additional job creation through increased economic activity along the corridor.