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Delhi News Daily > Blog > Business > Union Cabinet approves ₹25,000 crore road projects for Varanasi – Delhi News Daily
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Union Cabinet approves ₹25,000 crore road projects for Varanasi – Delhi News Daily

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Last updated: July 15, 2026 5:12 pm
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The Union Cabinet on Wednesday approved two road corridor projects in Uttar Pradesh aimed at enhancing connectivity in Varanasi, at an estimated cost of ₹25,445 crore.

 


The projects include a linking corridor between National Highway-19 (NH-19) and the Varanasi Ring Road, with riverbank connectivity along the Ganga, and another connecting NH-31 and the Varanasi Ring Road along the Varuna.

 


The two projects will be developed under the Hybrid Annuity Model (HAM). Under this framework, the authority pays the developer 40 per cent of the project cost upfront, while the remaining amount is paid through instalments, called annuities, with interest.

 
 


The 46-km Ganga corridor project will comprise a six-lane elevated main carriageway, a cable-stayed bridge, an extradosed foot overbridge-cum-major bridge, loops, ramps, link roads and service roads, and will be developed at a cost of ₹14,447 crore.

 


Of this, civil construction will cost ₹6,037.85 crore (including utility shifting but excluding goods and services tax, or GST), while land acquisition will cost ₹541.11 crore.

 


The 43-km Varuna corridor comprises a predominantly elevated six/four-lane carriageway, including the main carriageway, flyovers, loops, ramps and service roads, and will be built at a cost of nearly ₹11,000 crore, including civil construction costs of ₹4,565.33 crore and land acquisition costs of ₹934.91 crore.

 


Government officials said the remaining amount, after accounting for civil construction and land acquisition costs, has been earmarked for annuity and interest payments to the concessionaires.

 


Designed for an operating speed of 80-100 kmph, the Varuna corridor project will reduce travel time between NH-31 and Kashi railway station from around 40 minutes to 20 minutes, a reduction of nearly 50 per cent, a Cabinet statement said.

 


The Ganga corridor has been conceived as a transformative urban mobility project to decongest the road network of Varanasi and Chandauli by providing a high-speed, access-controlled connection between NH-19, the Varanasi Ring Road (NH-135B), Ramnagar, Banaras Hindu University (BHU) and other major urban destinations, the Cabinet said.

 


“With more than 15 crore (150 million) tourists and pilgrims visiting Varanasi every year, the project will significantly improve connectivity to major religious, educational and cultural landmarks, including the Kashi Vishwanath Temple, Banaras Hindu University (BHU), Namo Ghat, Ramnagar Fort, the ghats of Varanasi, and Kashi railway station, while substantially reducing congestion on the existing city road network,” it added.

 



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