In a major boost to connectivity in Northeast India, the National Highways Authority of India (NHAI) has signed a concession agreement for the construction of the much-anticipated Guwahati Ring Road with infrastructure firm M/s Dineshchandra R Agrawal Infracon Pvt. Ltd.

The agreement, finalised in the presence of NHAI Chairman Santosh Kumar Yadav and senior officials from the Ministry of Road Transport and Highways, marks a significant step towards decongesting Guwahati’s urban traffic and enhancing regional logistics efficiency.

The 121-kilometre ring road will be executed under the Build-Operate-Toll (BOT) model, notably without any government grant—signalling robust private sector confidence in infrastructure projects in the Northeast. While the overall cost is pegged at approximately ?7,000 crore (including land acquisition and utility shifting), the construction expenditure alone is expected to be around ?5,729 crore.

Designed to divert heavy vehicles away from city roads, the project is expected to ease traffic congestion, reduce pollution, enhance road safety, and cut travel time. Once complete, it will not only benefit Guwahati—Assam’s gateway to the Northeast—but also improve connectivity to neighbouring states including Meghalaya, Arunachal Pradesh, and Nagaland.

Officials noted that the project will also foster commercial development by improving linkages between industrial zones, border trade points, and rural hinterlands. It will be integrated with key national highways and transport corridors under national infrastructure programmes such as PM Gati Shakti and the Act East Policy.

A senior NHAI official described the project as “a strategic move towards improved regional connectivity and inclusive development in the Northeast.”

The concessionaire will be responsible for operating and maintaining the road during the contract period, recovering costs through toll collection. While the precise construction timeline is yet to be announced, work on the project is expected to commence shortly.