MP Cabinet clears 12 roads under Hybrid Annuity Model; 22 more to MPRDC
Synopsis
In one of its most wide-ranging single-session road decisions, the Madhya Pradesh Cabinet has cleared 12 highways under the Hybrid Annuity Model — spanning districts from Bhopal to the Rajasthan border — while simultaneously handing 22 more roads to the MPRDC. The dual move signals a structural shift in how the state plans to fund, build, and manage its road network.
Key Takeaways
The Madhya Pradesh Cabinet approved construction and upgradation of 12 roads under the Hybrid Annuity Model (HAM) on 25 August .
Key cleared stretches include the Bhopal-Vidisha Road (44.83 km) , Khalghat-Manawar-Mangod Road (93.11 km) , and Sitamau-Basai-Suwasra Road (82 km) .
The eastern Bhopal Bypass will be upgraded from four-lane to six-lane with paved shoulders, covering 51.86 km .
The Neemuch-Manasa-Rampura-Jhalawar Road (95.85 km) will be developed into a four-lane highway .
22 additional roads are being transferred to the MPRDC for professional management and long-term maintenance.
Cabinet minister Rakesh Singh announced the decisions after the Cabinet meeting in Bhopal .
The Madhya Pradesh Cabinet has approved the construction and upgradation of 12 key roads under the Hybrid Annuity Model (HAM), in a significant push to expand and modernise the state's road infrastructure. Separately, 22 additional roads are being transferred to the Madhya Pradesh Road Development Corporation (MPRDC) for professional management and timely execution, Cabinet minister Rakesh Singh announced on 25 August following the Cabinet meeting in Bhopal.
Key Roads Cleared Under HAM
Among the flagship projects is the Bhopal-Vidisha Road, approximately 44.83 km long, and the Khalghat-Manawar-Mangod Road, spanning roughly 93.11 km. In the Mandsaur region bordering Rajasthan, the Sitamau-Basai-Suwasra Road — approximately 82 km — has also received the Cabinet's clearance.
The Cabinet further approved the upgradation of the eastern Bhopal Bypass from a four-lane to a six-lane corridor with paved shoulders and service roads, covering approximately 51.86 km. The Neemuch-Manasa-Rampura-Jhalawar Road (also referred to as SAH), measuring 95.85 km, will similarly be developed into a four-lane highway with paved shoulders.
Other roads in the approved list include the Indore-Devpalpur Road, the Chapda-Deori to Dewas stretch, the Dara-Datia-Sevda Road, the Sarangpur Road, the Soy-Machalpur-Jirapur Road, the Rahatgarh-Khurai to Khemlasa Road, and the Sundara-Singhpur-Kothiari-Birsinghpur-Simaria-Goda-Sirmaur Road.
How the Hybrid Annuity Model Works
Under the Hybrid Annuity Model, a portion of the construction cost is paid to the developer during the building phase, while the remaining amount is disbursed as annuity payments spread over the concession period. This structure reduces the upfront financial burden on contractors while ensuring the state retains performance accountability throughout the project lifecycle.
Officials indicated that the HAM approach will enable the state to build a wider network of quality roads over the coming years, according to the minister.
22 Roads Transferred to MPRDC
In a parallel decision, the Cabinet resolved to transfer 22 roads to the Madhya Pradesh Road Development Corporation (MPRDC). The move is aimed at ensuring professional project management, streamlined execution, and long-term maintenance of the state's growing road network, Singh said.
The MPRDC transfer is intended to consolidate oversight under a single specialised body, reducing fragmentation in road project management — a recurring challenge in large-scale state infrastructure programmes.
What This Means for Madhya Pradesh
This is one of the more comprehensive single-Cabinet road infrastructure approvals in recent years for Madhya Pradesh, touching districts across the state from Bhopal and Indore to Mandsaur, Neemuch, and the Rajasthan border belt. The combined HAM and MPRDC decisions signal an accelerated push to close connectivity gaps ahead of the next state budget cycle. How quickly project timelines are finalised and tenders floated will determine whether the Cabinet's ambition translates into ground-level progress.
Point of View
But its annuity obligations accumulate on the state's books over the concession period, a fiscal pressure that rarely gets flagged in Cabinet announcements. Meanwhile, consolidating 22 roads under the MPRDC is only as effective as the corporation's own project management capacity, which has had a mixed record on deadline adherence. The real test will come at the tendering stage — whether these approvals translate into contracts awarded within six months or join the long queue of cleared-but-stalled state highway projects.
NationPress
25 Aug 2026
Frequently Asked Questions
What is the Hybrid Annuity Model approved by the Madhya Pradesh Cabinet?
The Hybrid Annuity Model (HAM) is a public-private partnership framework under which a portion of the road construction cost is paid to the developer during the building phase, and the remaining amount is released as annuity payments over the concession period. The Madhya Pradesh Cabinet approved 12 roads under this model on 25 August, covering key stretches across the state.
Which are the major roads cleared under the HAM in Madhya Pradesh?
The major roads approved include the Bhopal-Vidisha Road (44.83 km), the Khalghat-Manawar-Mangod Road (93.11 km), the Sitamau-Basai-Suwasra Road (82 km), the eastern Bhopal Bypass upgrade to six-lane (51.86 km), and the Neemuch-Manasa-Rampura-Jhalawar Road (95.85 km), among others.
Why are 22 roads being transferred to the MPRDC?
The Madhya Pradesh Cabinet decided to transfer 22 roads to the Madhya Pradesh Road Development Corporation (MPRDC) to ensure professional project management, timely execution, and long-term maintenance. The move is aimed at reducing fragmentation in road project oversight across the state.
What is the eastern Bhopal Bypass upgrade?
The Cabinet approved the upgradation of the eastern Bhopal Bypass from a four-lane to a six-lane corridor with paved shoulders and service roads, covering approximately 51.86 km. This is one of the larger urban connectivity projects in the current approval batch.
Who announced the Madhya Pradesh Cabinet road decisions?
Cabinet minister Rakesh Singh announced the decisions in Bhopal on 25 August, following the Cabinet meeting. He outlined both the HAM approvals and the MPRDC road transfer as part of the state's push to expand its road network.
