The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the construction of a four-lane highway corridor connecting Badvel to Nellore in Andhra Pradesh.
The ₹36.53 billion project will be developed under the Design-Build-Finance-Operate-Transfer (DBFOT) model, covering a total length of 108.13 kilometres. The proposed greenfield alignment begins at Gopavaram in YSR Kadapa District and ends at Krishnapatnam Port on NH-16 in SPSR Nellore District. By reducing travel distance by 33.9 kilometres and saving approximately one hour of commute time, the corridor is expected to significantly enhance fuel efficiency, reduce vehicle operating costs, and cut down carbon emissions. Strategically located, the highway will connect multiple industrial nodes, including Kopparthy on the Vishakhapatnam–Chennai Industrial Corridor, Orvakal on the Hyderabad–Bengaluru Industrial Corridor, and Krishnapatnam on the Chennai–Bengaluru Industrial Corridor. These links are expected to enhance multimodal transport and logistics connectivity across Andhra Pradesh. According to government estimates, the project will create around two million man-days of direct employment and an additional 2.3 million man-days of indirect employment during its development phase. The highway is also expected to act as a catalyst for regional economic growth by improving connectivity for industries, exporters, and logistics providers.
Officials highlighted the importance of the project for boosting intra-state and inter-state transport efficiency. Once completed, the highway will serve as a vital link between inland manufacturing hubs and coastal ports, contributing to faster movement of goods and improved trade competitiveness. The DBFOT model being used for this highway allows private players to finance and operate the road project for a specified period, with returns tied to traffic volumes and toll collection. This public-private partnership model is aimed at reducing the financial burden on the government while ensuring high-quality infrastructure delivery. The approval of the Badvel–Nellore corridor adds to the Centre’s growing focus on expanding critical transport networks in southern India. By aligning road development with industrial corridor planning, the government aims to optimise freight movement, reduce logistics costs, and promote balanced regional development.
Construction is expected to commence in the near future following the finalisation of financial closure and tendering processes.
