NHAI Awards ₹1,734 Cr Contract for NH-167 Four-Laning in Telangana

The National Highways Authority of India (NHAI) has awarded a ₹1,734 crore contract for the four-laning of the Gudebellur–Mahabubnagar section of NH-167 in Telangana, aimed at easing congestion and improving regional connectivity.

The 80-km project has been awarded to KNR Constructions Limited under the Hybrid Annuity Mode (HAM) . It is part of the strategic Hyderabad–Panaji Economic Corridor and was approved by the Cabinet Committee on Economic Affairs (CCEA) in February 2026.

The project includes the construction of five major bridges, 36 minor bridges, 260 culverts, 11 vehicular underpasses, 22 light vehicular underpasses (LVUPs), and one railway overbridge/underbridge , along with 48 km of service roads and a 56 km slip road . These additions are expected to significantly enhance traffic flow and safety standards along the corridor.

At present, the Gudebellur–Mahabubnagar stretch faces severe delays, especially across densely populated towns such as Gudebellur, Magnoor, Makthal, Marikal, Devarkadra, Jaklair, Yeligandla, and Banderpally. The four-laning is expected to reduce travel time, decongest urban stretches, and ensure smoother movement of goods and passengers .

Beyond easing traffic, 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 major industrial and commercial centres, including the Hyderabad–Bengaluru NICDC corridor , pharmaceutical clusters, medical hubs, and Special Economic Zones (SEZs).

Once completed, the upgraded highway will connect key cities such as Mahabubnagar, Narayanpet, Raichur, Devarkadra, Makthal, and Hyderabad , while also facilitating better access to regional tourist and religious destinations , boosting local economic activity.