The Union Cabinet has approved a major infrastructure project aimed at transforming road connectivity in Telangana, clearing an investment of ₹3,175 crore for the four-laning of National Highway-167 between Gudebellur and Mahabubnagar. The decision marks a significant upgrade along the Hyderabad–Panaji Economic Corridor and is expected to deliver long-term economic, logistical, and employment benefits across multiple districts.
Strategic Upgrade on the Hyderabad–Panaji Corridor
The approved project covers a total length of 80.01 kilometres and will convert the existing two-lane highway into a four-lane, access-controlled corridor designed for safer and faster travel. Once completed, the upgraded stretch will support vehicular speeds of up to 100 km/h, improve road geometry, and reduce congestion in urban and semi-urban areas.
The NH-167 upgrade will directly benefit districts including Mahabubnagar, Narayanpet, Raichur, Devarkadra, Makthal, and parts of Hyderabad’s extended economic influence zone. Officials estimate that travel time on this route will be reduced by nearly 50 percent, cutting journeys from approximately three hours to around 90 minutes.
Investment Model and Connectivity Gains
The project will be executed under the Hybrid Annuity Mode (HAM), with an approved cost of ₹3,175.08 crore. The upgraded highway will integrate NH-150 and NH-167N, strengthening inter-state connectivity between Telangana and Karnataka while improving access to industrial zones, logistics parks, pharma clusters, and agricultural markets.
By linking production centres with consumption hubs, the corridor is expected to significantly reduce logistics costs, enhance freight movement efficiency, and support faster movement of goods between Hyderabad, western Telangana, and coastal regions via Panaji.
Employment Generation and Economic Impact
According to official estimates, the NH-167 four-laning project is expected to generate close to 14.4 lakh person-days of direct employment and an additional 17.9 lakh person-days of indirect employment during the construction and allied phases. The employment opportunities will span construction, transport services, material supply chains, and maintenance operations.
The improved highway infrastructure is also expected to attract fresh investments into industrial and logistics sectors, particularly in Mahabubnagar and Narayanpet districts, which have been identified as emerging economic zones under regional development plans.
Cabinet Decision and Government Response
The project received formal approval from the Union Cabinet chaired by Prime Minister Narendra Modi, reflecting the Centre’s continued focus on expanding high-quality road infrastructure as a driver of economic growth and regional integration.
Union ministers highlighted that the NH-167 upgrade aligns with national goals of improving last-mile connectivity, supporting industrial corridors, and creating employment while enhancing road safety through modern engineering standards.
Official Announcement
Cabinet approves four-laning of Gudebellur–Mahabubnagar NH-167 (80 km | ₹3,175 Cr)
— Ashwini Vaishnaw (@AshwiniVaishnaw) February 14, 2026
🛣️ Upgrade on Hyderabad-Panaji Corridor
➡️ Districts covered: Mahabubnagar, Narayanpet, Raichur, Devarkadra, Makthal & Hyderabad
➡️ Travel time cut by 50% (3 hrs → 1.5 hrs)
➡️ Boosts regional… pic.twitter.com/574oRmG7py
Boost for Telangana’s Infrastructure Roadmap
The NH-167 four-lane project is being viewed as a major infrastructure boost for Telangana, strengthening its position within national economic corridors while supporting regional growth beyond Hyderabad. With improved road safety, reduced travel time, and enhanced freight capacity, the project is expected to deliver lasting benefits to businesses, commuters, and local economies.
Officials indicated that preparatory work, including land acquisition and detailed project planning, will be accelerated to ensure timely execution. Once operational, the corridor is expected to play a critical role in shaping the next phase of Telangana’s infrastructure-led development.
