The National Highways Authority of India (NHAI) has revised the cost of the northern segment of the Ring Road (RRR) project in Telangana from Rs 7,104 crore to Rs 15,627 crore due to an upgrade to a six-lane highway to meet future traffic demands.

The project, initially planned under the engineering, procurement, and construction (EPC) model, will now be executed under the Hybrid Annuity Model (HAM). Fresh tenders will be invited soon for the revised works. The original tender issued in December 2024 covered a 161-km, four-lane stretch from Girmapur in Sangareddy to Bhuvanagiri district. However, the finalisation of the tender was delayed after the state government requested an expansion, which later received approval from the Centre.

The project involves a 161-km stretch from Girmapur in Sangareddy to Yadadri Bhuvanagiri district, with work across five packages, which include Girmapur-Reddipalle (43 km), Reddipalle-Islampur (26 km), Islampur-PraRayagiri (43 km) and Rayagiri-Tangadpalli (35 km). The northern segment, part of National Highway 161-AA, will be designed for vehicles travelling up to 120 km/h. Compensation for affected farmers in the region is underway to avoid project delays.