Hyderabad: The Centre has cleared the budget for the northern stretch of the Regional Ring Road (RRR) around Hyderabad, ending a prolonged delay.
The Public Private Partnership Appraisal Committee under the Union finance ministry approved ₹23,995.60 crore for the project, enabling authorities to open pending tenders.
The project had remained stalled for nearly a year despite completion of land acquisition. With approvals now in place, construction is set to begin.
Budget rises sharply after revised cost estimates cleared
Initial estimates pegged the 161.518 km northern stretch at ₹15,000 crore. The revised approval raises the cost by nearly ₹9,000 crore. Officials said any delay beyond the three-year completion timeline could push costs further.
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The road will intersect national and state highways at nine locations. Large interchanges, each spread across 100-120 acres, will be built at these junctions.
Six-lane road planned; construction deadline set at three years
The northern stretch will be developed in two packages. Package 1 will cover 83.518 km from Girmapur in Sangareddy district to Pragnapur in Siddipet district. Package 2 will span 78 km from Pragnapur to Tangedpalli in Yadadri-Bhuvanagiri district.
Though initially proposed as an eight-lane road, the project has been scaled down to six lanes. The alignment width has also been reduced from 100 metres to 90 metres. The remaining 10 metres will be handed over to the state government.
Hybrid annuity model chosen for execution
Authorities have opted for the hybrid annuity model after evaluating public-private partnership and build-operate-transfer modes. The Centre will fund 40% of the project cost, while the contractor will raise the remaining 60%.
The National Highways Authority of India will sign a 15-year agreement with the contractor. The authority will repay the contractor's share with interest in instalments. The contractor will maintain the road during this period.
Key infrastructure components
The project includes major and minor structures:
- Major bridges: 44
- Minor bridges: 127
- Box culverts: 1,262
- Road overbridges: 4
- Underpasses: 44
- Vehicle overpass: 1
Cost breakup
- Civil construction: ₹8,106.19 crore
- Utility shifting: ₹5,357.59 crore
- Pre-construction expenses: ₹1,366.65 crore
- Escalation provision: ₹683 crore
- Land acquisition: ₹5,349.26 crore
The southern stretch alignment is yet to be finalised. The state government has proposed a 208 km alignment, which is under review by the National Highways Authority of India. A detailed project report is expected to bring clarity on costs.

