Andhra Pradesh Chief Minister N Chandrababu Naidu on Thursday said the state will complete national highway projects worth Rs 1.4 lakh crore by 2027, underlining the government’s focus on improving logistics efficiency, industrial connectivity and freight movement.

Chairing a review meeting on road infrastructure, Naidu also instructed officials to complete the Bengaluru-Kadapa-Vijayawada Economic Corridor by 2027. The corridor connects to the greenfield capital city of Amaravati and is expected to play a central role in linking southern and central Andhra Pradesh with major consumption and production centres.

The Chief Minister said future road projects must be planned with the clear objective of significantly reducing freight transportation costs, which remain a key constraint for industry and agriculture in the state.

Focus On Freight Efficiency And Corridor-Based Planning

Naidu directed officials to prioritise road projects that directly support freight movement rather than standalone highway stretches. He said upcoming highway development should increasingly focus on linking ports, inland water transport terminals and industrial corridors to create an integrated logistics network.

The state’s road strategy aligns with a broader national shift in highway planning, where the emphasis is moving away from rapid network expansion towards efficiency, reliability and multimodal integration. Officials said such an approach would help Andhra Pradesh leverage its long coastline, port infrastructure and emerging industrial clusters more effectively.

The Bengaluru-Kadapa-Vijayawada Economic Corridor, in particular, is expected to improve access to the Rayalaseema region while strengthening connectivity between Karnataka and coastal Andhra Pradesh. The corridor’s linkage to Amaravati is seen as critical for supporting administrative functions, real estate development and future industrial growth around the capital region.

Naidu said timely execution would be closely monitored, adding that delays in land acquisition, clearances or contractor performance would not be tolerated.

National Highways Strategy Shifts To Quality And Integration

The state’s push comes as India’s overall roads and highways programme enters a new phase, according to the Economic Survey 2025–26. The Survey noted that after more than a decade of accelerated construction, the focus has shifted to reducing logistics costs, easing congestion and improving reliability through corridor-based development and better project preparation.

India’s national highway network expanded by 60 per cent over the last decade, growing from 91,287 km in FY14 to 1,46,572 km as of December 2025. During the same period, operational high-speed corridors increased nearly tenfold, from 550 km to 5,364 km.

The pace of construction also more than doubled, with average annual highway construction rising to 9,704 km during 2014–25 compared with 4,174 km in the previous decade. The Survey said this scale of expansion has laid the foundation for a shift in priorities, from building new roads to making existing corridors more efficient and reliable.

According to the Survey, sustained capital investment, expansion of high-speed corridors, multimodal integration under PM GatiShakti and reforms in project delivery are strengthening capacity and network resilience across the country.

Technology And Reforms In Project Delivery

With major capacity creation already in place on key corridors, the next phase of highway development will be shaped by changes in execution standards and the use of technology. The Survey highlighted several reforms aimed at improving quality and reducing execution risks.

These include fixed-cost bidding, stricter eligibility norms for contractors, performance-based evaluation and additional safeguards against aggressive bidding practices. Mandatory drone surveys are now being used for alignment planning, while automated machine-aided construction and pre-cast components are being deployed for non-critical works in projects costing over ₹300 crore.

Such measures are expected to improve construction quality, reduce time overruns and enhance safety standards, while also lowering lifecycle costs of highway assets.

Asset Monetisation And Private Participation

Financing is also evolving alongside execution reforms. Capital expenditure on roads and highways has risen sharply, increasing from Rs 0.53 lakh crore in FY15 to Rs 3.06 lakh crore in FY26, according to Budget Estimates.

As the emphasis shifts from expansion to optimisation, asset monetisation is set to play a larger role. The government plans to launch its first public Infrastructure Investment Trust for highways in 2026, following cumulative monetisation of ₹1.52 lakh crore through Toll-Operate-Transfer projects and private InvITs.

The Survey said a public-private partnership pipeline covering 13,400 km of highways, with an estimated cost of ₹8.3 lakh crore, has been identified for development over the next three years. This pipeline is expected to attract long-term capital while allowing the government to recycle funds into new infrastructure.

Andhra Pradesh Aligns With National Priorities

Officials said Andhra Pradesh’s highway programme is being aligned with these national priorities, with a strong emphasis on corridor-based development, port connectivity and industrial access. By completing Rs 1.4 lakh crore worth of national highway projects by 2027, the state aims to position itself as a key logistics and manufacturing hub in southern India.

The Survey concluded that the transition from expansion-led construction to efficiency-led development marks a structural shift in India’s highways strategy. For states like Andhra Pradesh, this shift offers an opportunity to translate large-scale infrastructure investments into tangible economic gains through lower logistics costs, faster freight movement and improved connectivity.

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