New Delhi, March 18 – The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved on Wednesday the construction of the 4-lane, access-controlled National Highway 927 from Barabanki to Bahraich, which will span 101.515 km in Uttar Pradesh, with an investment of ₹6969.04 crore under a hybrid annuity mode (HAM).
The proposed upgrade of the Barabanki–Bahraich section of NH-927 in Uttar Pradesh will address severe geometric deficiencies, sharp curves, and congestion in built-up areas across the Barabanki and Bahraich districts. Designed as an access-controlled 4-lane highway with continuous service roads, the project will bypass major settlements, increase average travel speeds, reduce travel time to approximately one hour, and improve overall road safety, fuel efficiency, and vehicle operating costs, thereby enhancing regional mobility and socio-economic development, according to a Cabinet note.
The project provides seamless connectivity to key economic, social, and logistics nodes across the state. Additionally, the upgraded corridor will enhance multi-modal integration by connecting with three Economic Nodes, two Social Nodes, and 12 Logistics Nodes, providing enhanced multimodality with the Rupaidiha Land Port and Airports, thereby facilitating faster movement of goods and passengers across the region, it said.
Upon completion, the project will strategically establish a vital cross-border trade and transit corridor between India and Nepal via the Nepalganj border, significantly improving access to the Rupaidiha Land Port. It will enhance connectivity to remote districts such as Bahraich and Shravasti, support PM GatiShakti economic and logistics nodes, and stimulate agri-trade, tourism, cross-border commerce, and regional investment.
The project has been approved in a hybrid annuity model (HAM), which is a public-private partnership (PPP) framework used for infrastructure development, combining Engineering, Procurement, and Construction (EPC) (40 per cent government-funded) and Build-Operate-Transfer (BOT) (60 per cent private-funded) models. It reduces the financial burden on developers by offering stable, annuity-based, inflation-indexed returns while the government retains revenue risk.
This is the second major highway project cleared by the Cabinet Committee on Economic Affairs this month, following the approval on March 10 of the revised total capital cost of ₹3630.77 crore for the construction of greenfield connectivity to the Jewar International Airport from Delhi-Faridabad-Ballabhgarh-Sohna Spur of the Delhi-Mumbai Expressway in Uttar Pradesh and Haryana, under a hybrid annuity mode.
This 31.42 km long project corridor will provide direct and high-speed connectivity from south Delhi, Faridabad, and Gurugram to the Jewar International Airport, thereby promoting economic growth and logistical efficiency across the National Capital Region (NCR).
