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Business
Andhra Pradesh Approves Rs 863 Crore PPP Project to Upgrade 131‑km Highway to Odisha
✍️ Swarajya
🗓 03 Oct 2026, 09:16 PM
👁 9
The Andhra Pradesh government has cleared a Rs 863 crore public‑private partnership to modernise a 131‑kilometre stretch linking northern Andhra Pradesh with Odisha.
The state cabinet of Andhra Pradesh gave the green light to a Rs 863 crore public‑private partnership aimed at revamping a 131‑kilometre highway that connects the northern districts of the state with the neighbouring state of Odisha. The project, announced by the state’s road development authority, will be executed under a PPP model, inviting private sector participation for design, construction, operation and maintenance.
The upgraded corridor is expected to enhance regional connectivity, cut travel time and facilitate smoother movement of goods between the two states, bolstering trade and tourism. Officials said the improvement aligns with the government’s broader push to modernise infrastructure and attract investment.
Funding will be sourced through a mix of state capital, private equity and long‑term loans, with the private partner responsible for recouping its investment via toll collection over an agreed concession period. Detailed project reports and tender documents are slated for release in the coming weeks.
If completed on schedule, the highway upgrade could generate significant employment opportunities during construction and stimulate economic activity in the surrounding rural and urban areas.
The upgraded corridor is expected to enhance regional connectivity, cut travel time and facilitate smoother movement of goods between the two states, bolstering trade and tourism. Officials said the improvement aligns with the government’s broader push to modernise infrastructure and attract investment.
Funding will be sourced through a mix of state capital, private equity and long‑term loans, with the private partner responsible for recouping its investment via toll collection over an agreed concession period. Detailed project reports and tender documents are slated for release in the coming weeks.
If completed on schedule, the highway upgrade could generate significant employment opportunities during construction and stimulate economic activity in the surrounding rural and urban areas.