CCEA Clears MP Highway Project

New Delhi, June 03: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a ₹4,415.60 crore project to upgrade and widen major stretches of National Highway 347B in Madhya Pradesh, strengthening road connectivity and logistics infrastructure across central India.

The project will be executed under the Hybrid Annuity Mode (HAM) and involves upgrading a 125.01-km stretch from Hiwarkhedi-Roshni-Ashapur-Rudhy from an intermediate lane to a two-lane highway with paved shoulders. Additionally, the 108.64-km Deshgaon-Julwania section will be widened from two lanes to four lanes.

The infrastructure upgrade is expected to benefit several districts, including Betul, Khandwa, Khargone and Barwani, by addressing long-standing traffic congestion, geometric deficiencies and safety concerns on the existing corridor.

A key component of the project is the construction of a 16.20-km greenfield bypass around Khargone, aimed at easing congestion in urban areas and improving traffic movement along the route.

The improved highway network is expected to significantly reduce travel time, increase average vehicle speeds and enhance road safety. Better road infrastructure is also likely to improve fuel efficiency and lower transportation costs for both passengers and freight operators.

The project carries substantial economic significance as the upgraded NH-347B corridor will connect multiple industrial, agricultural and logistics hubs across the state. It will provide access to six PM Gati Shakti Economic Nodes, including a textile cluster, two mega food parks, an industrial park and two super thermal power plants.

The highway will also improve connectivity to five key social infrastructure nodes, including the aspirational districts of Khandwa and Barwani, along with the tribal districts of Betul, Khandwa and Khargone.

In addition, the corridor will be linked to five major logistics nodes comprising two railway stations, two airports and a multi-modal logistics park, enhancing supply chain efficiency and regional trade.

The project is expected to support economic activity by facilitating smoother movement of goods and services, reducing logistics costs and improving access to markets. Enhanced connectivity is also likely to strengthen access to healthcare, education and other essential services in the region.

The approval reflects the government’s continued emphasis on infrastructure-led growth and regional development. Once completed, the upgraded corridor is expected to play a critical role in attracting investment, boosting economic integration and supporting long-term development across Madhya Pradesh.