Cabinet approves Development of 4-Lane Badvel- Nellore Highway from Badvel- Gopavaram Village on National Highway NH-67 to Guruvindapudi on NH-16 in Andhra Pradesh on Design-Build-Finance-Operate-Transfer (DBFOT) mode

New Delhi, May 28, 2025 — The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the construction of a 4-lane Badvel-Nellore Corridor in Andhra Pradesh. The new highway corridor, spanning 108.134 km along National Highway 67 (NH-67), is set to be developed under the Design-Build-Finance-Operate-Transfer (DBFOT) model at an estimated cost of Rs 3,653.10 crore.

This strategic corridor will enhance connectivity between key industrial nodes within Andhra Pradesh, linking the Kopparthy Node on the Vishakhapatnam-Chennai Industrial Corridor (VCIC), Orvakal Node on the Hyderabad-Bengaluru Industrial Corridor (HBIC), and Krishnapatnam Node on the Chennai-Bengaluru Industrial Corridor (CBIC). The improved connectivity is expected to positively impact India’s Logistic Performance Index (LPI), strengthening the country’s transportation infrastructure.

The Badvel-Nellore Corridor will begin at Gopavaram Village in the YSR Kadapa district on the existing NH-67 and extend to the Krishnapatnam Port Junction on NH-16 (Chennai-Kolkata) in the SPSR Nellore district. This route will provide vital strategic access to the Krishnapatnam Port, identified as a priority node under the Chennai-Bengaluru Industrial Corridor (CBIC).

One of the key benefits of the project will be a reduction in travel distance to Krishnapatnam Port by approximately 33.9 km—from 142 km to 108.13 km—compared to the current Badvel-Nellore route. This shortening of the route is expected to cut travel time by nearly one hour, resulting in significant fuel savings, lower vehicle operating costs, and a reduced carbon footprint.

The project’s alignment and detailed map have been finalized to optimize traffic flow and regional accessibility.

In addition to infrastructural benefits, the project is projected to generate around 20 lakh man-days of direct employment and 23 lakh man-days of indirect employment during construction and operational phases. Furthermore, the corridor is expected to spur economic growth in the surrounding regions, leading to additional job creation and increased business activities.

This development marks a significant step towards boosting industrial connectivity in Andhra Pradesh, supporting economic growth, and improving logistics efficiency on a national scale.