Government Greenlights Rs 3,653 Crore Badvel-Nellore Corridor Project

The Cabinet Committee on Economic Affairs has given the green light to the Badvel-Nellore Corridor project, which spans over 108 kilometers and is set to cost Rs 3,653 crore. This initiative aims to improve access to key industrial nodes in Andhra Pradesh and is expected to significantly reduce travel time to Krishnapatnam Port. Additionally, the project is projected to create millions of job opportunities. Alongside this, two railway multi-tracking projects have also been approved to enhance transportation efficiency. Read on to discover how these developments will impact the region's economy and logistics.

By Narendra Chaudhary May 28, 2025, 19:34 IST

Cabinet Committee Approves Major Infrastructure Project

On Wednesday, the Cabinet Committee on Economic Affairs, under the leadership of Prime Minister Narendra Modi, sanctioned the development of the Badvel-Nellore Corridor, which spans 108.134 kilometers and features four lanes.

The estimated expenditure for this initiative is approximately Rs 3,653.10 crore. This corridor aims to enhance access to key locations within three significant Industrial Corridors in Andhra Pradesh: the Kopparthy Node on the Vishakhapatnam-Chennai Industrial Corridor (VCIC), the Orvakal Node on the Hyderabad-Bengaluru Industrial Corridor (HBIC), and the Krishnapatnam Node on the Chennai-Bengaluru Industrial Corridor (CBIC).

Moreover, the project is anticipated to positively influence the country's Logistic Performance Index (LPI). According to the Cabinet Committee's announcement, the Badvel-Nellore Corridor will commence at Gopavaram Village on the existing National Highway NH-67 in YSR Kadapa District and will conclude at the Krishnapatnam Port Junction on NH-16 (Chennai-Kolkata) in SPSR Nellore District. This will also enhance strategic access to Krishnapatnam Port, recognized as a priority node within the Chennai-Bengaluru Industrial Corridor.

This new route will shorten the distance to Krishnapatnam Port by 33.9 kilometers, reducing it from 142 kilometers to 108.13 kilometers compared to the current Badvel-Nellore road, and will save approximately one hour of travel time. Additionally, the project is expected to create around 20 lakh man-days of direct employment and 23 lakh man-days of indirect employment.

In conjunction with this, the Cabinet Committee also approved two multi-tracking initiatives for Indian Railways, aimed at ensuring faster and more efficient transportation for both passengers and freight. This railway project, with an estimated cost of Rs 3,399 crore, is projected to be completed by 2029-30. It seeks to enhance travel convenience, lower logistics costs, reduce oil imports, and contribute to decreased CO2 emissions, thereby promoting sustainable and efficient rail operations. These enhancements are expected to streamline supply chains and foster accelerated economic growth.