The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved the widening of key stretches of National Highways 63 and 563 in Telangana to four-lane standards at a total cost of ₹7,597.16 crore.
The project covers the Armoor–Jagtial–Mancherial section of NH-63 and the Jagtial–Karimnagar section of NH-563, with a combined length of 190.76 km. The highway expansion will be executed under three work packages, with the NH-63 stretches being developed under the Hybrid Annuity Model (HAM) and the NH-563 stretch under the Build-Operate-Transfer (Toll) model.
The approved project aims to ease severe traffic congestion along major built-up areas in Nizamabad, Jagtial, Mancherial and Karimnagar districts. The Armoor–Jagtial–Mancherial corridor currently experiences heavy traffic bottlenecks at locations such as Anksapoor, Korutla, Jagtial, Dharmapuri, Lakshettipet and Mancherial, while the Jagtial–Karimnagar stretch faces congestion in Jagtial, Potharam, Gangadhara and Karimnagar.
According to the government, the upgraded highways will feature four-lane configurations with bypasses around urban and densely populated areas. The corridor has been designed for speeds of up to 100 km per hour, ensuring safer and more efficient movement of passenger and freight traffic.
The project comprises three sections. The 63.6-km Armoor–Jagtial section of NH-63 will involve 17.95 km of brownfield development and 45.65 km of greenfield alignment. The 68.295-km Jagtial–Mancherial section will largely be a greenfield project, with 66.10 km of new alignment and only 2.05 km of brownfield work. The 58.866-km Jagtial–Karimnagar section of NH-563 will include 34.96 km of greenfield construction and 24.14 km of brownfield widening.
The total capital cost has been estimated at ₹2,471.76 crore for the Armoor–Jagtial section, ₹2,730.72 crore for the Jagtial–Mancherial stretch and ₹2,394.68 crore for the Jagtial–Karimnagar corridor.
Officials said the project aligns with the PM GatiShakti National Master Plan and will improve connectivity to five major economic nodes, seven social and tourism nodes, and ten logistics hubs across Telangana.
The economic nodes connected by the corridor include Special Economic Zones at Siddipet and Warangal Urban, Mega Food Parks at Nizamabad and Siddipet, and a fishing and seafood cluster in Rajanna Sircilla district.
The highway network will also enhance access to key social and religious destinations such as Vemulawada, Kondagattu, Nagunur Fort, Dharmapuri, Kaleshwaram, Lower Manair Dam and Quila Fort.
In terms of logistics connectivity, the project will provide better access to important railway stations, including Nizamabad, Jagtial, Korutla, Peddapalli, Mancherial, Poddur, Gangadhara and Karimnagar.
The government said that once completed, the upgraded highways are expected to reduce travel time between Armoor and Mancherial by around one hour and 30 minutes, while the journey between Jagtial and Karimnagar is likely to be shortened by approximately 45 minutes.
Apart from improving travel efficiency, the project is expected to lower fuel consumption, reduce carbon emissions and decrease vehicle operating costs. It will also contribute to improving India’s Logistics Performance Index (LPI) by facilitating smoother movement of goods and services.
Traffic surveys conducted during FY 2024-25 recorded average daily traffic volumes of 14,949 passenger car units (PCU) on the Armoor–Jagtial section, 12,084 PCU on the Jagtial–Mancherial stretch and 20,446 PCU on the Jagtial–Karimnagar corridor, highlighting the growing demand for expanded road infrastructure in the region.
The project is expected to generate 34.43 lakh direct man-days and 42.7 lakh indirect man-days of employment. Upon completion, travel time between Armoor and Mancherial is expected to reduce by about 1 hour and 30 minutes, while travel between Jagtial and Karimnagar is expected to be shortened by about 45 minutes.
