The Cabinet Committee on Economic Affairs has approved the widening of National Highway-167 from Gudebellur to Mahabubnagar on the Hyderabad–Panaji Economic Corridor to a four-lane standard in Telangana. The project spans 80.01 km and has a total capital cost of Rs 31,750.8 mn on Hybrid Annuity Mode. The upgrade aims to reduce travel time and ease congestion through highly urbanised towns and villages along the route. The alignment will connect with National Highway-150 and NH-167N, improving links to economic, social and logistic nodes across the state. The corridor will provide connectivity to three PM GatiShakti economic nodes, nine social nodes and seven logistic nodes, thereby facilitating faster movement of goods and passengers. The scheme is expected to enhance freight efficiency and lower logistics costs for industries in Narayanpet and Mahabubnagar districts. The project includes bypasses and realignments over 36.8 km and integrates with existing road networks to support multi-modal transport. Total civil cost including utility shifting is Rs 18,689.0 mn and pre-construction activities are estimated at Rs 4,591.1 mn, bringing the total capital cost to Rs 31,750.8 mn. Annual average daily traffic for fiscal year 2024-25 was estimated at 17,991 passenger car units. The proposed access-controlled corridor is intended to open new avenues for trade, industrial development and improved regional connectivity. The construction phase is projected to generate approximately 1.44 mn person-days of direct employment and 1.79 mn person-days of indirect employment, with additional jobs expected from induced economic activity. The project has been sanctioned under the National Highways (Original) scheme and will be executed on Hybrid Annuity Mode. Implementation is expected to strengthen links between major religious and economic centres and to support socio-economic growth in the region.