On 3 January 2006, Prime Minister Dr. Manmohan Singh laid the foundation stone for the proposed Outer Ring Road (Phase I) near Shamshabad on the outskirts of Hyderabad.

The 162 km eight-lane access controlled expressway will be developed in two phases, and will cover 6,250 acres. The alignment of both the phases has been finalized.

Construction work on Phase I of 24.32 km, costing Rs.500 crore, is likely to begin by March/April 2006. Full completion is targeted for end-2008. By March 2008, a part of the expressway would be commissioned to dovetail with the completion of the greenfield Shamshabad (Hyderabad) international airport.

Work on Phase II (138 km, costing Rs.2,500 crore) is targeted to begin by September 2006. 

The government will provide maximum help for funding the project and if necessary, the validity gap fund mechanism will be utilized and funds will be sourced from the SPV for the ORR.

The project near the Hyderabad International Airport is being executed under the public-private partnership and Japanese, UAE and Malaysian companies has evinced interest in funding the project. The private sector developer is likely to be finalized by March 2006.

Also See:

EoIs invited for construction of ORR project in Andhra Pradesh (02-Jan-06)