Hyderabad RRR: Centre and Telangana To Share Land Cost 50-50

The long-pending Hyderabad North Regional Ring Road (RRR) has crossed a major milestone, with the Detailed Project Report (DPR) for the 162-kilometre stretch now finalised. The update was shared by Union Minister for Road Transport and Highways Nitin Gadkari in the Lok Sabha on Thursday, February 5.

The proposed ring road is aimed at decongesting Hyderabad by redirecting freight and long-distance traffic away from the city, while improving regional connectivity across northern districts of Telangana.

Land acquisition cost to be shared equally

Responding to a question raised by BJP MP Etela Rajender, Gadkari said the Centre and the Telangana government have agreed to share land acquisition expenses equally. Under the arrangement, the state will bear 50 per cent of the land cost, a move expected to significantly speed up project execution.

State extends financial support

Beyond sharing land costs, the Telangana government has also offered additional financial concessions to ease the project’s burden. These include a waiver of royalty on minor minerals required for construction and a refund of State Goods and Services Tax (SGST) linked to the project. Together, these measures are expected to lower overall costs and improve financial viability.

Central funding for road infrastructure

Gadkari also informed Parliament that Telangana has received ₹367.17 crore from the Central Infrastructure Fund during the current financial year. The allocation is intended to strengthen road infrastructure and support both ongoing and upcoming highway projects in the state.

Highway expansion in Telangana

Over the last six years, around 1,904 kilometres of national highways have been developed across Telangana, the minister noted. During the same period, 21 new toll plazas were established to manage traffic flow and maintain highway assets.

Boost for connectivity and growth

Once operational, the Hyderabad Regional Ring Road is expected to ease pressure on city roads, cut travel time for freight movement and improve access between Hyderabad and surrounding districts. Officials believe the project will also act as a catalyst for industrial expansion, logistics hubs and balanced regional development, positioning the RRR as a critical transport corridor for the state’s future growth.