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February 15, 2026

Union Cabinet Gives Green Light for National Highway Upgrades and Rehabilitation

The CSR Journal Magazine

The Union Cabinet convened under the leadership of Prime Minister Narendra Modi to approve the expansion and rehabilitation of several National Highways. The announcement, made on February 14, underscores the government’s commitment to enhancing infrastructure, which is expected to significantly contribute to economic growth, improve tourism, and create job opportunities.

Widening of National Highway-167

One of the key projects sanctioned is the widening of National Highway-167, specifically the section extending from Gudebellur to Mahabubnagar. This route is part of the Hyderabad-Panaji Economic Corridor.

Presently, the existing highway experiences considerable delays due to traffic congestion and inadequate road geometry, particularly in urban areas such as Gudebellur, Magnoor, Makthal, Marikal, Devarkadra, Jaklair, Yeligandla, and Banderpally. The proposed development aims to enhance the highway to a four-lane standard, which will benefit the Narayanpet and Mahabubnagar districts in Telangana by improving freight efficiency and reducing logistics costs.

Impact on Socio-Economic Development

This project is poised to facilitate enhanced connectivity with two major National Highways—NH-150 and NH-167N—thereby linking vital economic, social, and logistics centers throughout Telangana. In addition, the upgraded corridor will promote multimodal integration, providing access to three PM Gati-Shakti Economic Nodes, nine Social Nodes, and seven Logistic Nodes.

These developments are anticipated to expedite the movement of goods and passengers, further bolstering socio-economic growth in the region. The 80.01 km-long project is estimated to generate around 14.4 lakh direct and 17.9 lakh indirect job days, stimulating local economic activity.

Upgradation of National Highway-56

The Cabinet has also approved the upgradation of the Dhamasiya-Bitada/Movi and Nasarpore-Malotha sections of National Highway-56 to a four-lane standard. This project is expected to enhance accessibility to the Statue of Unity, thereby increasing tourist footfall. The highway runs through the Aspirational District of Narmada and links various tribal regions, including Dahod, Chhota Udepur, Tapi, and Bharuch. The improvements are designed to advance economic growth while enhancing connectivity to significant tourist attractions.

Travel Efficiency and Employment Generation

The National Highway-56 upgrade will reduce travel time significantly—by about 40 percent—bringing it down from 2.5 hours to 1.5 hours, thanks to designed speeds of 100 km/h and average speeds around 70 km/h. The approved project spans approximately 107.67 km and is anticipated to provide 19.38 lakh direct job days alongside 22.82 lakh indirect job days, fostering additional employment by stimulating economic activities along the corridor.

Enhancements on National Highway-160A

Furthermore, the Cabinet has greenlit the upgrade of the Ghoti-Trimbak (Mokhada)-Jawhar-Manor-Palghar stretch of National Highway-160A in Maharashtra. This initiative aims to mitigate traffic congestion, particularly in the west of Nashik, where dense industrial development has led to increased freight traffic on urban roads. The upgrade will allow for a bypass, facilitating smoother transit for vehicles traveling from Mumbai and southern regions, ultimately reducing urban traffic pressures.

Alignment with PM GatiShakti Principles

This project aligns with the PM GatiShakti framework and is expected to connect six PM GatiShakti Economic Nodes, one Social Node, and eight Logistics Nodes, thereby likely enhancing India’s Logistics Performance Index (LPI). With traffic projections estimating over 10,000 PCUs by 2028, the highway is poised for further enhancements to support long-term economic and infrastructural growth.

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