The Cabinet Committee on Economic Affairs approved Rs 109.9832 billion (bn) to develop a 43.218 km elevated corridor in Varanasi that is to be implemented by the National Highways Authority of India under the Hybrid Annuity Model. The approval follows the government plan to ease traffic congestion and to improve connectivity between NH-31 and the Varanasi Ring Road. The project scope and financing arrangements were set out by officials as part of the Varanasi Decongestion Plan.

The corridor will consist predominantly of six and four-lane elevated carriageways along the Varuna river, incorporating flyovers, ramps, loops and service roads to maintain uninterrupted flow. Of the total project cost, Rs 45.6533 bn has been earmarked for civil construction while Rs 9.3491 bn will be allocated for land acquisition. The government stated that the design seeks to balance capacity expansion with urban integration and minimise disruption during construction.

The alignment is planned to improve access to key transport nodes including Kashi Railway Station, Varanasi Junction, Varanasi City railway station, Lal Bahadur Shastri International Airport, Deen Dayal Upadhyaya Junction and Ramnagar Port, and to link major city landmarks and educational institutions. Designed for operating speeds of 80 to 100 kmph, the corridor is expected to reduce travel time between NH-31 and Kashi Railway Station from around 40 minutes to 20 minutes and to lower vehicle operating costs. Authorities also anticipate improvements in road safety and faster movement of passenger and freight traffic.

The government said the project will strengthen multimodal connectivity under the PM Gati Shakti National Master Plan by improving access to the Chandauli Social Economic Zone, the Chandauli social node and six major logistics nodes. It is expected to facilitate the movement of agricultural produce, industrial goods, construction materials and minerals across eastern Uttar Pradesh while supporting tourism and broader economic activity. Contracts will be tendered and managed under the Hybrid Annuity Model, with the National Highways Authority of India overseeing construction and subsequent maintenance responsibilities.