Cabinet Approves ₹3,653 Cr Badvel-Nellore 4-Lane Corridor in Andhra Pradesh

In a strategic move to strengthen transportation infrastructure and spur economic development in Andhra Pradesh, the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Shri Narendra Modi has given its nod for the construction of a 108.134 km 4-lane Badvel–Nellore highway corridor. The project will be executed at an estimated cost of ₹3,653.10 crore under the Design-Build-Finance-Operate-Transfer (DBFOT) model.

This vital highway upgrade on National Highway 67 (NH-67) will be implemented with a focus on enhancing industrial corridor connectivity, logistics efficiency, and employment generation in the region.

Strategic Corridor to Support Three Industrial Corridors

The approved highway project has a significant strategic value as it will provide enhanced connectivity to three major Industrial Corridors traversing Andhra Pradesh:

• Kopparthy Node under the Visakhapatnam–Chennai Industrial Corridor (VCIC)

• Orvakal Node under the Hyderabad–Bengaluru Industrial Corridor (HBIC)

• Krishnapatnam Node under the Chennai–Bengaluru Industrial Corridor (CBIC)

By offering a direct and modernized link between Gopavaram village (YSR Kadapa District) and Krishnapatnam Port Junction (SPSR Nellore District), the project will serve as a critical logistics spine, enabling seamless movement of goods and enhancing access to India’s eastern coast.

Port Connectivity and Reduced Travel Distance

One of the most transformative elements of the project is its impact on port connectivity. The corridor will:

• Reduce travel distance to Krishnapatnam Port by 33.9 km—from the current 142 km to just 108.13 km

• Cut travel time by approximately one hour

• Lower fuel consumption, carbon emissions, and Vehicle Operating Cost (VOC)

Krishnapatnam Port, a major gateway for international trade, has been identified as a priority node under the CBIC, making this corridor integral to India’s global trade ambitions and competitiveness.

Economic and Employment Benefits

The construction of the Badvel-Nellore Corridor is projected to yield significant socio-economic benefits:

• 20 lakh man-days of direct employment during the construction phase

• 23 lakh man-days of indirect employment through supply chains and support services

• Additional job creation in ancillary sectors owing to increased economic activity in the surrounding areas

The improved corridor is expected to attract new investments in logistics parks, agro-processing zones, warehousing hubs, and industrial units, thereby catalyzing rural-urban economic integration.

National Impact on Logistics and Sustainability

The project aligns with the broader objectives of the PM Gati Shakti National Master Plan, which aims to foster multi-modal logistics, reduce infrastructure bottlenecks, and elevate India’s Logistics Performance Index (LPI).

Key environmental and economic gains include:

• Reduced vehicular congestion and improved road safety

• Lower CO₂ emissions from decreased fuel use

• Boost in India’s sustainability profile in line with global climate goals

Moreover, better highway infrastructure is anticipated to ease the movement of bulk goods such as fertilizers, cement, food grains, minerals, and marine products, benefiting exporters and manufacturers.

Seamless Regional Integration

The corridor will also improve regional access for residents of dozens of villages between Badvel and Nellore, enhancing connectivity to health care, education, and employment centers. With increased mobility and reduced transport costs, local economies are expected to flourish.

Additionally, the DBFOT implementation model ensures private sector participation, encouraging operational efficiency, innovation, and long-term maintenance commitments.

The 4-lane Badvel–Nellore corridor is a forward-looking investment that promises to redefine transportation in Andhra Pradesh. By bridging key industrial nodes, facilitating port access, and supporting economic and environmental goals, the project is poised to become a cornerstone of India’s infrastructure transformation.

The project not only strengthens the country’s freight and trade backbone but also underscores the government’s commitment to inclusive, resilient, and sustainable growth in line with the vision of New India.