A key step has been taken in the construction of the Amaravati Outer Ring Road (ORR), which is planned to be built around the cities of Amaravati, Vijayawada and Guntur, the capital of Andhra Pradesh. The National Highways Authority of India (NHAI) has invited tenders in four packages for this huge project. The civil works will be undertaken at a total estimated cost of Rs 11,537.70 crore.

The tender process began from Friday. The road will be constructed over a total length of 195.13 km. Out of this, 189.93 km. is a six-lane ORR, while there is also a 5.2 km. four-lane connecting road from Narakodur to Budampadu. Bids were allowed to be submitted till November 18, and the technical bids will be opened on the 19th. NHAI has started the tender process in advance with the expectation that final approvals from the central committees will come soon.

This project will be undertaken under the Hybrid Annuity Model (HAM) method. According to this, the government will pay 40 percent of the funds to the company that wins the contract during the construction. The remaining 60 percent will have to be provided by the contractor. The government will repay that amount along with interest in 10-15 years. Each package is to be completed in three years, it was stated in the tenders.

This ORR will pass through 97 villages in NTR, Eluru, Krishna, Guntur and Palnadu districts. As part of its construction, two huge bridges, three tunnels, several underpasses and road over bridges will be constructed over the Krishna river. If this project is completed, it is expected to reduce traffic pressure in the capital region, improve connectivity to ports and airports, and contribute to economic development.