The proposed 41-kilometre road, to be designated as NH 516F, will connect Vakalapudi near Kakinada to Annavaram, passing through 21 villages.

The highway, to be built with a width of 45 metres, is part of Bharatmala programme and is expected to significantly reduce travel time between Kakinada and Annavaram. Officials believe the project will improve connectivity for more than 30 villages across Kakinada Rural, U Kothapalli, Thondangi and Sankhavaram mandals.

The alignment begins near Vakalapudi lighthouse and runs along Uppada beach road, which is expected to boost coastal tourism while also enhancing road safety. The Centre has allocated Rs 1,440 crore for the project.

According to officials, approximately 231 hectares of land is required, of which 36 hectares belongs to the government and 195 hectares has been acquired from private owners. However, a dispute over four hectares of forest land remains unresolved. While revenue records indicate the land was classified as government property in 1960, later allotments were reportedly made to individuals. Compensation claims from these occupants have led to a stalemate, as the NHAI has sought documentary clarity before proceeding. Despite this, public representatives have expressed confidence that the issue will be settled soon with government intervention.

The project will involve construction of around 169 structures. These include a flyover at Annavaram, two vehicular overpasses near Vakalapudi lighthouse, and three major bridges in Vakalapudi and Uppada stretches. In addition, plans include 18 vehicular underpasses, 11 light vehicle underpasses, 15 small vehicle underpasses, eight minor bridges and 110 box culverts.

The highway will be developed under Hybrid Annuity Model, combining public and private sector participation. Once completed, the road is expected to ease traffic congestion, improve regional access and open up new opportunities for economic and tourism growth along the coastal belt.