Centre Approves Amaravati Outer Ring Road Project

15 Jan 2025 CW Team

The NHAI had submitted the project proposal after the state government requested the revival of the ORR, which had been initially approved in 2018 but was later scrapped when the YSR Congress Party (YSRCP) came into power.

The Union government’s approval came after Chief Minister Chandrababu Naidu personally advocated for the project during his visits to New Delhi. Prime Minister Narendra Modi supported the CM's request, and Transport Minister Nitin Gadkari confirmed the revival of the project, with the Centre also taking responsibility for the land acquisition costs.

After several rounds of discussions, NHAI submitted a detailed project report for the Centre’s clearance. Sources stated that the approval committee raised concerns about the proposal and trimmed some aspects of the project. Notably, the committee suspended the already approved Vijayawada East bypass due to project duplication.

The 189-kilometre ORR is expected to boost growth in five districts, including Vijayawada, Guntur, Bapatla, Krishna, and Palnadu. The total cost of the project is estimated at Rs 16,000 crore, including land acquisition. However, due to Chief Minister Naidu’s promise to exempt SGST on materials used for construction, the cost has been reduced by Rs 1,150 crore.

Surprisingly, the committee has reduced the proposed six-lane road width to 70 metres, down from the state government’s original 150-metre proposal, arguing that 70 metres would suffice for an eight-lane road and avoid unnecessary cost escalation. The committee also noted that land acquired under the National Highways Act cannot be used for purposes like laying railway tracks, suggesting that the state government seek additional land for railway lines if necessary.

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The Centre has approved the much-awaited Amaravati Outer Ring Road (ORR) project, with the project approval committee of the Ministry of Road Transport and Highways (MoRTH) officially clearing the proposal from the National Highways Authority of India (NHAI). The NHAI had submitted the project proposal after the state government requested the revival of the ORR, which had been initially approved in 2018 but was later scrapped when the YSR Congress Party (YSRCP) came into power. The Union government’s approval came after Chief Minister Chandrababu Naidu personally advocated for the project during his visits to New Delhi. Prime Minister Narendra Modi supported the CM's request, and Transport Minister Nitin Gadkari confirmed the revival of the project, with the Centre also taking responsibility for the land acquisition costs. After several rounds of discussions, NHAI submitted a detailed project report for the Centre’s clearance. Sources stated that the approval committee raised concerns about the proposal and trimmed some aspects of the project. Notably, the committee suspended the already approved Vijayawada East bypass due to project duplication. The 189-kilometre ORR is expected to boost growth in five districts, including Vijayawada, Guntur, Bapatla, Krishna, and Palnadu. The total cost of the project is estimated at Rs 16,000 crore, including land acquisition. However, due to Chief Minister Naidu’s promise to exempt SGST on materials used for construction, the cost has been reduced by Rs 1,150 crore. Surprisingly, the committee has reduced the proposed six-lane road width to 70 metres, down from the state government’s original 150-metre proposal, arguing that 70 metres would suffice for an eight-lane road and avoid unnecessary cost escalation. The committee also noted that land acquired under the National Highways Act cannot be used for purposes like laying railway tracks, suggesting that the state government seek additional land for railway lines if necessary.

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