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KNR Constructions Ltd has secured a highway development contract worth INR 1,734 crore from the National Highways Authority of India (NHAI) for a key stretch in Telangana under the Hybrid Annuity Model (HAM). The project involves four-laning of an approximately 80 km section of National Highway 167 between Gudebellur and Mahabubnagar, forming part of the Hyderabad-Panaji corridor. The contract includes a construction period of 730 days followed by a 15-year operation and maintenance phase. The award strengthens the company's order book and reflects continued government investment in highway expansion under corridor-based infrastructure programmes aimed at improving connectivity and freight movement across regions.
KNR Constructions Ltd has received a Letter of Award from the National Highways Authority of India (NHAI) for a highway development project valued at INR 1,734 crore in Telangana, involving the four-laning of a key national highway stretch as part of the Hyderabad-Panaji corridor, with execution structured under the Hybrid Annuity Model (HAM). Advertisement
The awarded project covers an approximately 80.01 km stretch on National Highway 167 between Gudebellur and Mahabubnagar. It forms part of a broader economic corridor aimed at strengthening inter-state connectivity and improving movement efficiency along a key route linking Telangana with western India.
Under the terms of the contract, the construction phase has been scheduled for completion within 730 days. Following this, the developer will be responsible for operating and maintaining the asset for a concession period of 15 years from the date of commercial operation. The HAM framework provides a structured payment mechanism, combining government support during construction with annuity-based payments over the operational phase.
Project scope includes upgrading the existing highway to a four-lane standard, alongside associated infrastructure such as bridges, culverts, service roads and grade-separated structures. The development is intended to address congestion along the corridor, particularly in densely populated stretches, while improving travel time and road safety.
The corridor currently experiences delays across several towns and intermediate locations, and the widening is expected to support smoother passenger and freight movement. The project also aligns with national infrastructure planning initiatives aimed at strengthening multimodal connectivity, linking logistics hubs, industrial zones and economic nodes across the region.
For KNR Constructions, the order adds to its existing portfolio of road and infrastructure projects and contributes to strengthening its order book visibility. The company has maintained a presence in HAM-based road projects, which continue to form a significant component of India's highway development strategy.
The award comes amid continued public investment in national highways, where corridor-based expansion and upgradation projects are being prioritised to support economic activity and reduce logistics costs. Execution timelines and operational commitments under HAM are structured to balance risk between the public authority and private developer, ensuring long-term asset management alongside construction delivery.
The project reflects ongoing momentum in the roads and highways sector, with EPC contractors and developers continuing to secure large-scale contracts across states as part of the government's infrastructure pipeline.
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