Project upgraded from four-lane to six-lane; will be executed under the Hybrid Annuity Model
Hyderabad, November 25– The National Highways Authority of India (NHAI) has revised the cost of the northern segment of the Hyderabad Regional Ring Road (RRR) from Rs.7,104 crore to Rs.15,627 crore, more than doubling the original estimate.
The cost escalation follows a decision to upgrade the project from a four-lane to a six-lane corridor to address future traffic requirements.
The project will now be executed under the Hybrid Annuity Model (HAM), replacing the previously approved Engineering, Procurement, and Construction (EPC) model.
Fresh tenders will be floated soon for the revised works.
The northern segment of the RRR is crucial for improving connectivity around Hyderabad and is expected to ease traffic congestion on existing routes. The upgrade to six lanes demonstrates forward planning to accommodate projected traffic growth over the coming decades.
Under the HAM model, the government will contribute 40% of the project cost during construction, while the developer recovers the remaining 60% through annuity payments over the concession period.
