The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved a major highway expansion project in Telangana with a total investment of Rs 7,597.16 crore. The project involves widening the Armoor-Jagtial-Mancherial section of National Highway (NH)-63 and the Jagtial-Karimnagar section of National Highway (NH)-563 to four-lane standards, covering a combined length of 190.76 kilometers.
The Armoor-Jagtial-Mancherial section will be developed under the Hybrid Annuity Model (HAM), while the Jagtial-Karimnagar section will be executed on a Build-Operate-Transfer (Toll) model. The entire project has been divided into three work packages to ensure efficient implementation across multiple districts of Telangana.
The highway sections currently face severe traffic congestion due to numerous built-up areas along the route. The Armoor-Jagtial-Mancherial stretch passes through Nizamabad, Jagtial, and Mancherial districts, encountering congestion at Anksapoor, Korutla, Jagtial, Dharmapuri, Lakshettipet, and Mancherial. Similarly, the Jagtial-Karimnagar section traverses heavily congested areas including Potharam, Gangadhara, and Karimnagar.
The upgraded highways will feature a four-lane configuration with bypasses around built-up areas and open tolling systems. The design will ensure a speed of 100 kilometers per hour, significantly improving travel efficiency across the affected districts. The project aims to enhance regional mobility and promote socio-economic development in the region.
The development aligns with the PM GatiShakti principles and will connect five economic nodes, seven social nodes, and ten logistic nodes. The economic nodes include SEZs in Siddipet and Warangal Urban, mega food parks in Nizamabad and Siddipet, and a fishing seafood cluster in Rajanna Sircilla. This connectivity is expected to positively impact the Logistic Performance Index (LPI) of the country.
Upon completion, the project will significantly reduce travel time. The journey between Armoor and Mancherial will be shorter by approximately 1 hour and 30 minutes, while travel between Jagtial and Karimnagar will be reduced by about 45 minutes. The highways will provide safe, fast, and uninterrupted connectivity for both passenger and freight traffic.
The project will generate substantial employment opportunities, creating 34.43 lakh man-days of direct employment and 42.7 lakh man-days of indirect employment. The construction period is set at 2.5 years, followed by 15 years of operation and maintenance for the HAM sections, while the BOT section will have a total concession period of 20 years.
The highway expansion will also deliver environmental and economic benefits through substantial reductions in fuel consumption, carbon emissions, and vehicle operating costs. The Annual Average Daily Traffic (AADT) recorded in FY 2024-25 shows 14,949 PCU per day on the Armoor-Jagtial section, 12,084 PCU per day on the Jagtial-Mancherial section, and 20,446 PCU per day on the Jagtial-Karimnagar section, demonstrating the urgent need for capacity enhancement.
