Cabinet clears ₹6,969-crore Barabanki–Bahraich highway, approves hydro and industrial park schemes

The Union Cabinet on Wednesday approved the construction of a 4-lane access-controlled National Highway-927 from Barabanki to Bahraich in Uttar Pradesh at a cost of ₹6,969.04 crore. 

Union Minister Ashwini Vaishnaw in a briefing said the 101.5-km project, cleared by the Cabinet Committee on Economic Affairs (CCEA) under the Hybrid Annuity Mode (HAM), aims to enhance connectivity to key economic, social and logistics hubs in the state, according to an official statement. 

The project entails a civil construction cost of about ₹3,485.49 crore, along with ₹1,574.85 crore earmarked for land acquisition. 

Boost to connectivity, safety and travel efficiency 

The proposed upgradation of the Barabanki–Bahraich stretch is expected to address existing issues such as sharp curves, geometric deficiencies, and congestion in built-up areas across both districts. 

Designed as an access-controlled four-lane highway with continuous service roads, the corridor will bypass major habitations, improve average travel speeds and reduce travel time to around one hour. It is also expected to enhance road safety, fuel efficiency and lower vehicle operating costs. 

The project is estimated to generate 36.54 lakh person-days of direct employment and 43.04 lakh person-days of indirect employment. 

Strengthening logistics and cross-border trade 

The upgraded corridor will improve multi-modal connectivity by linking three economic nodes, two social nodes and 12 logistics nodes, while also enhancing integration with the Rupaidiha Land Port and nearby airports. 

Upon completion, it will serve as a key cross-border trade and transit route between India and Nepal via the Nepalganj border, improving access to the Rupaidiha Land Port. The project is also expected to boost connectivity to remote districts such as Bahraich and Shravasti, while supporting agri-trade, tourism and regional investment. 

Cabinet clears hydro, industrial park schemes 

In addition, the Cabinet approved a small hydro power development scheme with an outlay of ₹2,585 crore to add 1,500 MW of renewable energy capacity. 

The government also cleared the ₹33,660-crore Bharat Audyogik Vikas Yojana (BHAVYA), aimed at developing 100 plug-and-play industrial parks across the country. The scheme is expected to create around 15 lakh direct jobs while strengthening industrial infrastructure and manufacturing capacity.