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Cabinet approves Widening of National Highway-167 from Gudebellur to Mahabubnagar

Published: Feb 16, 2026

By TIOLCorplaws News Service

NEW DELHI, FEB 16, 2026: THE Cabinet Committee on Economic Affairs, yesterday has approved the Widening of National Highway-167 from Gudebellur to Mahabubnagar on the Hyderabad-Panaji Economic Corridor to 4-Lane Standard in Telangana with a Total Project Length of 80.01 km and Total Capital Cost of Rs.3175.08 crore on Hybrid Annuity Mode (HAM) under NH (O) scheme.

Currently, connectivity between Gudebellur to Mahabubnaagr on existing National Highway NH-167 experience significant travel time delay due to very poor geometry and traffic congestion at town area, passing through highly urbanized towns/villages i.e Gudebellur, Magnoor, Makthal, Marikal, Devarkadra, Jaklair, Yeligandla, and Banderpally. To address these challenges, the project is proposed to be developed as 4 lane standard. The project will provide significant benefit to Narayanpet & Mahabubnagar districts in the state of Telangana. This will enhance the efficiency of freight movement, reducing logistics cost and driving socio-economic growth in the region.

The project alignment integrates with 2 major National Highways (NH-150 & NH-167N) providing seamless connectivity to key economic, social, and logistics nodes across Telangana. Additionally, the upgraded corridor will enhance multi-modal integration and seamless connectivity by provide connectivity to three PM GatiShakti Economic Nodes, nine Social Nodes and seven Logistic Nodes thereby facilitating faster movement of goods and passengers across the region.

Upon completion, the NH-167 upgradation work will play a pivotal role in regional economic growth, strengthening connectivity between major religious and economic centers and opening new avenues for trade and industrial development. The proposed access-controlled 4-lane project with the length of 80.01 km will thus generate close to 14.4 lakh person-days of direct employment and 17.9 lakh person-days of indirect employment. The project will also induce additional employment opportunities due to increase in economic activity in the vicinity of the proposed corridors.

Appendix - I: Project Details

Feature

Details

Project Name

Widening of National Highway-167 from Gudebellur to Mahabubnagar on the Hyderabad-Panaji Economic Corridor to 4-Lane Standard in the State of Telangana with a Total Project Length of 80.01 km and Total Capital Cost of Rs.3175.08 crore on Hybrid Annuity Mode (HAM) under NH (O) scheme

Corridor

Gudebellur – Mahabubnagar section of Hyderabad – Panaji Economic Corridor

Length (km)

80.01 (including bypass & realignments over 36.8 km)

Total Civil Cost including Utility Shifting (Rs Cr.)

1868.90

Cost of Pre-construction Activities (LA Cost + Other Cost)

459.11

Total Capital Cost (Rs Cr.)

3175.08

Mode

Hybrid Annuity Mode (HAM)

Major Roads Connected

National Highways – NH-150 & NH-167N

Economic / Social / Transport Nodes Connected

Economic Nodes:

NICDC : Hyderabad – Bangalore NICDC

Pharma & Medical cluster- Hyderabad

SEZs in Hyderabad

Social Nodes:

Aspiration district – Raichur, Many tourist & Religious places

Logistic Nodes:

Airport -1 No. (Hyderabad)

Railway stations:4 Nos.

MMLPs : 2 Nos.

Major Cities / Towns Connected

Mahabubnagar, Narayanpet, Raichur, Devarkadra, Makthal & Hyderabad etc.,

Employment Generation Potential

14.4 lakh person-days of direct employment and 17.9 lakh person-days of indirect employment

Annual Average Daily Traffic (AADT) in FY-24-25

Estimated at 17,991 Passenger Car Units (PCU)

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