Ayodhya to Get Rs1,199 Crore Bypass as NHAI Appoints Ceigall India for Major Infrastructure Project Starting July 9
Ayodhya is set to witness a significant boost to its transportation and infrastructure network as the National Highways Authority of India (NHAI) officially appointed Ceigall Northern Ayodhya Bypass Private Limited, a subsidiary of Ceigall India, to execute the construction of a 35.4-kilometre-long northern bypass around the temple town. With an estimated cost of ₹1,199.30 crore, the project will be developed under the Hybrid Annuity Model (HAM), combining public funding with private execution and risk-sharing. The bypass aims to ease growing traffic congestion around Ayodhya, especially in light of its emergence as a major religious tourism hub following the construction and inauguration of the Ram Temple.
According to NHAI’s letter dated July 1, 2025, and a joint memorandum signed on June 25, 2025, between the authority and the concessionaire, the formal appointed date of the project has been declared as July 9, 2025. This date marks the beginning of all contractual and construction-related activities, and Ceigall India is expected to mobilize its resources immediately to begin work on the ambitious four-to-six lane highway. The Ayodhya bypass is part of the National Highways Development Project (NHDP) Phase-VII and represents one of the government’s key infrastructure investments in eastern Uttar Pradesh, a region fast emerging as a religious, cultural, and logistical powerhouse. The new highway will facilitate smoother transit for both pilgrims and commercial traffic by diverting vehicles away from the congested inner city of Ayodhya, thereby enhancing travel time efficiency, improving road safety, and reducing vehicular emissions in the core heritage zones of the city.
The selected concessionaire, Ceigall India, is known for its robust presence in the infrastructure sector, particularly in executing expressways, flyovers, and arterial highways across northern India. Under the hybrid annuity model structure, NHAI will fund 40% of the total cost during the construction phase, while Ceigall India will arrange the remaining 60% through a mix of equity and debt, to be recouped through annuity payments linked to performance and availability of the road. NHAI has outlined strict quality and safety provisions to be maintained by the concessionaire from the appointed date, including comprehensive road maintenance, timely completion, and installation of modern safety features such as lane marking, signages, lighting, and surveillance systems.
The authority stated clearly that traffic-worthiness and safety shall be ensured at all times by the concessionaire from the very start, indicating that the operational integrity of the highway is a non-negotiable aspect of the concession agreement. The Ayodhya bypass will not only serve as a logistical lifeline for the region but also function as a vital infrastructural support system for the expanding network of religious and cultural landmarks in and around the city. With over 20 million tourists expected annually after the Ram Temple’s completion, and new institutions, hotels, and commercial centres rapidly developing around Ayodhya, the northern bypass is strategically timed to support the city’s next phase of growth. Officials familiar with the project added that land acquisition, environmental clearances, and utility relocations are already underway, with coordination from state and local authorities being prioritized to avoid delays.
From an engineering standpoint, the bypass will feature grade separators, culverts, embankments, and drainage systems designed to withstand heavy monsoon loads and seasonal usage spikes. The project has been designed with future scalability in mind, allowing lane expansion and smart highway features to be integrated over time, aligning with India’s broader vision of intelligent transport systems. In addition to its economic and traffic benefits, the bypass project is also seen as a key job generator for the region, with hundreds of skilled and unskilled workers expected to be employed directly or indirectly during the construction phase.
The highway’s alignment has reportedly been drawn up with minimal environmental disruption, and plantation of trees along the road has been proposed to ensure ecological balance in line with India’s green highway guidelines. Ceigall India’s selection by NHAI signals growing confidence in domestic infrastructure players who have consistently delivered under the hybrid annuity model. With their extensive track record and capacity to deliver within tight timelines, the company is expected to handle the complexity of constructing a major bypass in a sensitive and culturally significant city with the required diligence.
The bypass is likely to connect with other regional highways feeding into Faizabad, Sultanpur, Gonda, and Basti, thereby opening up a wider economic corridor around Ayodhya and offering commercial transporters a faster, safer route bypassing city limits. As part of the central government’s multi-pronged strategy to upgrade pilgrimage cities across India, Ayodhya’s bypass joins a growing list of projects including the expansion of railway lines, modernization of Ayodhya Dham Junction, improved airport connectivity, and rapid urban renewal programs in temple districts.
It reflects not just the physical transformation of the region but also the central government’s attempt to merge spiritual significance with modern infrastructure. The hybrid annuity model adopted here ensures a balance between government oversight and private sector efficiency, ensuring that taxpayers’ funds are spent judiciously while maintaining accountability in project execution.
With July 9 marking the beginning of actual on-ground work, the coming weeks will be critical as Ceigall India initiates pre-construction activities such as land preparation, setting up of construction camps, and site-level mobilization. Locals have been notified through district-level communication, and social impact assessments have reportedly been undertaken to address resettlement and compensation concerns wherever applicable. Ayodhya’s development is now more than symbolic—it is being etched in concrete, steel, and tarmac.
