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Andhra Pradesh: Centre Approves Development Of Anantapur-Guntur Highway At Rs 9,000 Crore

  • The 417 km National Highway project will be developed under a hybrid annuity model.

V Bhagya SubhashiniDec 16, 2022, 10:09 AM | Updated 12:00 PM IST
The Vijayawada-Guntur National Highway. (Pratapkagitha/Wikimedia Commons)

The Vijayawada-Guntur National Highway. (Pratapkagitha/Wikimedia Commons)


The central government has approved the construction of the 417 km National Highway between Anantapur and Guntur in Andhra Pradesh.

The state government, which had already secured the Bengaluru-Kadapa-Vijayawada Highway, now will have another National Highway between Anantapur and Guntur.

The cost to build NH 544 D is Rs 9,000 crore. The project is developed under hybrid annuity model (HAM). Under the HAM model, the Centre will pay 40 per cent, while the developer is responsible for the remaining 60 per cent.

The concessionaire is in charge of maintaining the project until the concession period, which covers the construction phase and 15 years of fixed operations under the HAM model comes to an end.

The proposed Anantapur-Guntur Highway design has been prepared by taking into account the existing National Highways en route. The proposed NH will connect the current NHs and upgrade remaining sections into four-lane highways.

“The Union Surface Transport and Highways Ministry has cleared the new NH between Anantapur and Guntur and started inviting bids to launch the works. We are gearing up to kick start the works by January,” said a senior National Highways Authority of India (NHAI) official, reports Times Of India. 

The 417-kilometre National Highway No-544D connects Anantapur to Guntur via Tadipatri, Kolimigundla, Owk, Banaganapalli, and Nandyal in Kurnool, and Gajualapalli, Giddalur, Cumbum, and Thokapalli in Prakasam, and Vinukonda, Narasaraopet in Guntur.

​​The highway project was initiated as the Rs 20,000-crore Anantapur-Amaravati Expressway project five years ago by the previous Telugu Desam Party government  and was put on hold. 

The state government realised that acquiring over 3,000 acres of land from the Union Forest and Environment Ministry was a massive task because it was proposed to pass through the Nallamala Tiger Reserve.

In addition to monetary grants, the government was required to acquire and provide nearly double the land to the forest department as compensation for the creation of new forests.

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