Cabinet Approves 4-Lane Badvel-Nellore Highway Project to Boost Andhra Pradesh’s Industrial Corridors

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given the green light for the construction of a four-lane highway corridor connecting Badvel to Nellore in Andhra Pradesh. The 108.134-kilometer-long project will be developed under the Design-Build-Finance-Operate-Transfer (DBFOT) model at an estimated cost of ₹3,653.10 crore.

This strategic infrastructure development aims to enhance connectivity across three major industrial corridors in the state: the Vishakhapatnam-Chennai Industrial Corridor (VCIC), the Hyderabad-Bengaluru Industrial Corridor (HBIC), and the Chennai-Bengaluru Industrial Corridor (CBIC). Specifically, the highway will link the Kopparthy Node (VCIC), Orvakal Node (HBIC), and Krishnapatnam Node (CBIC), thereby contributing significantly to the nation's Logistic Performance Index (LPI).

Strategic Route for Economic Growth

The corridor will begin at Gopavaram Village in the YSR Kadapa District along National Highway NH-67 and terminate at the Krishnapatnam Port Junction on NH-16 in the SPSR Nellore District. The new route will serve as a vital logistics artery, directly connecting inland industrial hubs with the Krishnapatnam Port — a key node under the CBIC framework.

Travel Efficiency and Environmental Benefits

By replacing the existing Badvel-Nellore road, the new highway will reduce the travel distance from 142 km to 108.13 km — a reduction of 33.9 km. Commuters and freight operators will also save an estimated one hour of travel time. This improvement is expected to cut down fuel usage, reduce the carbon footprint, and lower the Vehicle Operating Cost (VOC), making transportation more sustainable and economical.

Employment and Economic Impact

The construction phase alone is projected to generate approximately 20 lakh man-days of direct employment and 23 lakh man-days of indirect employment. Furthermore, the corridor is anticipated to spur regional economic activity, attracting industries, logistics hubs, and support services to areas along the route.

This major infrastructure initiative is a step forward in India's goal of improving its transport network and industrial connectivity, particularly in the southern region.

Annexure-I

The details of Project Alignment and Index Map: 4-Lane Badvel-Nellore Highway Project

Figure 1: Index Map of Proposed Corridor

Figure 2: Detailed Project Alignment