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Andhra govt. approves Rs 1,172-cr Chilakapalem-Rayagada road, work to start soon

Friday, 06 Feb 2026
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The Andhra Pradesh government has approved the construction of the Chilakapalem-Ramabhadrapuram-Rayagada (CRR) road, a key infrastructure project aimed at improving connectivity between North Andhra and neighbouring Odisha.

The project, estimated at Rs 1,172 crore, will be implemented under the public-private partnership (PPP) hybrid annuity model (HAM), and construction is expected to begin soon. The CRR road spans 131 km, connecting Srikakulam, Vizianagaram, and Parvathipuram-Manyam districts with Odisha, and is part of a larger initiative to develop three major roads in North Andhra. The other two roads, Vizianagaram-Palakonda via Rajam (72 km) and Kalingapatnam-Parvathipuram via Rayagada (108 km), were not approved as they failed to meet commercial viability criteria.

Officials from the state’s Roads & Buildings department prepared detailed project reports (DPRs) for all three roads, with CRR road receiving the nod due to its strategic importance. This development marks a significant step toward strengthening regional infrastructure and promoting smoother transport and trade between Andhra Pradesh and Odisha.

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