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Union Cabinet approves ₹14,115 crore Delhi tunnel, UP highway projects to boost connectivity

Union Cabinet approves ₹14,115 crore Delhi tunnel, UP highway projects to boost connectivity

In a major infrastructure push, the Centre has approved ₹14,115 crore worth of road projects spanning Delhi and Uttar Pradesh. The investments are expected to cut travel time, ease congestion and enhance connectivity across key economic corridors.

Business Today Desk
Business Today Desk
  • Updated Jul 1, 2026 3:42 PM IST
Union Cabinet approves ₹14,115 crore Delhi tunnel, UP highway projects to boost connectivityThe Cabinet approved the four/six-laning of the Kanpur-Kabrai corridor in Uttar Pradesh at an estimated investment of ₹7,145 crore.

The Union Cabinet on Wednesday approved two major national highway projects worth ₹14,115 crore to improve urban mobility, reduce traffic congestion and strengthen connectivity in the National Capital Region and Uttar Pradesh.

Briefing the media after the Cabinet meeting, Union Information and Broadcasting Minister Ashwini Vaishnaw said the government has cleared the construction of an 8.1-km six-lane tunnel on NH-148AE in Delhi and the 242-km Kanpur-Kabrai highway corridor in Uttar Pradesh.

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The Delhi project, estimated to cost ₹6,970 crore, will connect the Shivmurti Interchange on the Dwarka Expressway (NH-248BB) with Nelson Mandela Marg in Vasant Kunj. Of the total stretch, around 3.1 km will be constructed as an underground tunnel passing beneath the ecologically sensitive Southern Ridge Forest.

The project will be developed as a greenfield corridor under the Hybrid Annuity Model (HAM) and is expected to be completed within five years. Once operational, the tunnel is expected to significantly improve connectivity between West Delhi and South Delhi, while easing congestion on several busy arterial roads across the capital. The government expects the project to reduce travel time and improve traffic movement for commuters travelling between the Dwarka Expressway, IGI Airport and southern parts of Delhi.

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The Cabinet also approved the four/six-laning of the Kanpur-Kabrai corridor in Uttar Pradesh at an estimated investment of ₹7,145 crore.

The 242-km access-controlled highway forms part of the Bhopal-Kanpur Economic Corridor and will be developed under the Build-Operate-Transfer (Toll) model. Construction is targeted to be completed within two-and-a-half years.

The highway will pass through Kanpur, Hamirpur and Mahoba districts, with Mahoba identified as an aspirational district. The project is expected to improve connectivity across the Bundelkhand region, facilitate faster movement of freight and passengers, reduce logistics costs and support industrial and economic development.

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According to the government, the improved road network will also enhance access to markets, generate employment during construction and strengthen regional transport infrastructure.

With a combined investment of ₹14,115 crore, the two projects are part of the Centre's broader strategy to expand the national highway network, improve last-mile connectivity and create high-speed transport corridors that support economic growth and reduce travel time across key urban and industrial regions.

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Published on: Jul 1, 2026 3:38 PM IST
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