Five packages floated under HAM model; 98% land acquisition complete; tenders to be finalized January 16, 2026
Hyderabad, November 29, 2025 – After a year-long wait, the Regional Ring Road (RRR) North project has finally gained momentum with the National Highways Authority of India (NHAI) inviting tenders for the 6-lane access-controlled expressway under the Hybrid Annuity Model (HAM).
Project Details
Total Packages: 5
Project Cost: Rs.8,532 crore
Tender Finalization: January 16, 2026
Model: Hybrid Annuity Model (HAM)
Major Upgrade from Original Plan
Earlier, the project was floated in the EPC (Engineering, Procurement and Construction) model for a 4-lane road. The revised plan now features a 6-lane access-controlled expressway, representing a significant upgrade to accommodate future traffic growth.
Package-I Specifications
The first package involves:
- Development of 6-Lane Access Controlled Greenfield Regional Expressway on the Northern side of Hyderabad
- Route: From Girmapur village (Ch. 1.518) in Sangareddy to Reddipalle village (Ch. 33.000) in Medak
- Length: 34.518 km in Telangana
- Designation: Under NH(O) on HAM Mode
Land Acquisition Progress
According to Minister Komatireddy Venkat Reddy, preparations this time are much stronger:
98% land acquisition complete
Rs.6,000 crore allocated for land acquisition (Rs.3,000 crore state government + Rs.3,000 crore central government) through HUDCO
This marks substantial progress compared to the previous attempt, where pending land acquisition was a major bottleneck.
Reasons for Earlier Delays
The project faced significant delays primarily due to:
- Land acquisition issues across the alignment
- Environment and Forest clearances required for certain stretches
- Coordination challenges between state and central agencies
With 98% of land now acquired and most clearances in place, the project is positioned for smooth execution.
HAM Model Benefits
Under the Hybrid Annuity Model:
- Government contributes 40% of project cost during construction
- Developer recovers remaining 60% through annuity payments over concession period
- Reduces upfront funding burden on contractors
- Ensures better risk sharing between government and private sector
Strategic Importance
The Regional Ring Road North is crucial for:
- Decongesting Hyderabad’s Outer Ring Road (ORR), which is experiencing capacity constraints
- Improved connectivity between Sangareddy, Medak, and surrounding districts
- Industrial development along the corridor
- Faster movement of goods and passengers around Hyderabad’s northern periphery
- Reduced travel time for inter-district and inter-state traffic
Complete Northern Segment
The northern segment of the RRR, when complete, will span approximately 161 km and cost an estimated Rs.15,627 crore after the upgrade from 4-lane to 6-lane configuration.
The segment will be divided into multiple packages to facilitate faster execution and allow multiple contractors to work simultaneously.
Timeline Expectations
With tenders being finalized by January 16, 2026, actual construction could begin by mid-2026, subject to contractor mobilization and final clearances.
The 6-lane access-controlled expressway design will include:
- Grade separators at major junctions
- Service roads where necessary
- Modern toll collection systems
- Safety features including crash barriers and emergency lanes
- Provisions for future expansion
Economic Impact
The Rs.8,532 crore investment will:
- Create thousands of construction jobs
- Boost economic activity in Sangareddy and Medak districts
- Improve land values along the corridor
- Facilitate industrial and commercial development
- Enhance regional connectivity
State-Centre Collaboration
The equal funding split for land acquisition (Rs.3,000 crore each from state and centre through HUDCO) demonstrates strong coordination between the Telangana government and central authorities in pushing this critical infrastructure project.
With substantial progress on land acquisition and environmental clearances, the RRR North project appears poised for successful execution, finally delivering on the long-awaited promise of a comprehensive ring road system around Hyderabad.
