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Hyderabad Elevated Corridor Project

Country
India India
Status
Approved
Area Of Operation
Transport Infrastructure Transport Infrastructure
Type
Sovereign

Quick Facts

Financing Approval Date
September 17, 2026
Current Limit of NDB Financing
USD 395 million
Borrower
The Republic of India
Project Implementing Entity
Hyderabad Metropolitan Development Authority

More About This Project

Hyderabad, the capital of Telangana, is a major economic and technology hub experiencing rapid urbanization and motorization. Between 2015 and 2025, the city’s population grew by about 30%, while the vehicle fleet expanded far faster than national averages, placing severe pressure on the road network. As capacity expansion has lagged behind demand, average travel speeds have fallen sharply, congestion has intensified, and safety risks have increased, particularly on key arterial corridors linking the city center with regional and national highways.

Critical bottlenecks persist on sections of National Highway-44 and State Highway-01 from the Outer Ring Road to Paradise Junction where both highways converge. The Project is a critical response to decongest these sections by proposing an integrated “Y”-shaped solution comprising two linked expressway corridors, designed to segregate through-traffic from local movements, relieve congestion at the core bottleneck, and improve mobility, safety, and network efficiency across Hyderabad.

The Project comprises construction of two 6-lane elevated corridors in the city of Hyderabad: (i) an 18.12 km expressway connecting State Highway-01, of which 11.14 km will be elevated; and (ii) a 5.40 km expressway, of which 3.05 km will be elevated, forming part of an 18.35 km feeder road to National Highway-44, with the balance being implemented by National Highways Authority of India. Additionally, the Project will pilot an AI-integrated intelligent transport systems with advanced analytics, leveraging Hyderabad’s strong digital and technology ecosystem to establish a scalable model for wider application across India.

The Project will contribute to enhanced mobility in Hyderabad, thereby improving accessibility to key services and facilities and overall quality of life of residents as envisioned in the Hyderabad Metropolitan Region’s Comprehensive Mobility Plan.

Government of Telangana serves as an executing agency, responsible for overall planning and execution of the Project. Hyderabad Metropolitan Development Authority (HMDA) is the implementing agency responsible for day-to-day project implementation. The implementation period for the Project is from 2025 to 2030.

The Project has been categorized as Category A in accordance with the NDB Environment and Social Framework (NDB ESF). The main E&S impacts and risks of the Project include large-scale land acquisition and displacement affecting approx. 2,000 households, several court cases contesting the Project’s right-of-way, biodiversity loss from removal of 2,200 trees, and complex construction-phase risks in a dense urban setting. HMDA has made efforts to minimize impacts through project design, but significant residual impacts remain, particularly related to resettlement. E&S impacts and risks will be mitigated through the formulation of a resettlement policy framework which further requires preparation and implementation of a comprehensive resettlement action plan, site-specific environmental and social management plans, and measures in the Environmental and Social Impact Management Plan.



Source of Funds Amount 
NDB Loan USD 395 million
HMDA Funds USD 304.7 million

 

NDB Borrower Project Entity
Public Sector Department

Yang Ji

The Republic of India

S.Divyadharshini s.divyadharshini@ias.nic.in

The Government of Telangana

Mr. Jayesh Ranjan,

secy-hma-maud@telangana.gov.in

 

Hyderabad Metropolitan Development Authority

Ms. Ch Param Jyothi

ce@hmda.gov.in