cabinet-clears-8-300-cr-coastal-highway-project-for-odisha

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved the construction of a new coastal highway between Rameshwar and Paradeep in Odisha at a cost of ₹8,300.79 crore.

 

The project, to be developed under the Hybrid Annuity Model (HAM), will span 160.18 km and be executed in two packages covering parts of Khurda, Puri, Kendrapada and Jagatsinghpur districts.

 

According to an official statement, the new corridor aims to improve connectivity along Odisha's coast and ease traffic pressure on existing highways. The current road network includes NH-16, a six-lane section of the Golden Quadrilateral, and NH-316, which connects Bhubaneswar, Puri, Satapada and Konark.

 

The government noted that stretches between Puri-Satapada and Puri-Konark suffer from poor road geometry, heavy ribbon development and high local traffic volumes, making them unsuitable for efficient long-distance travel.

 

Under the approved plan, the Rameshwar-Konark section will be developed as a four-lane highway, while the Konark-Paradeep stretch will be built as a two-lane road with paved shoulders. The highway will be designed for speeds of up to 100 kmph.

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The project is expected to significantly improve travel efficiency and regional mobility across coastal Odisha while supporting socio-economic development in the region.

 

The government said the corridor is aligned with the PM GatiShakti National Master Plan and will connect nine economic nodes and five logistics nodes, helping strengthen freight movement and improve the country's Logistics Performance Index.

 

Upon completion, travel time between Rameshwar and Paradeep is expected to reduce by around two-and-a-half hours. The highway will provide faster and safer connectivity for both passenger and freight traffic.

 

The project is also expected to lower fuel consumption, reduce carbon emissions and cut vehicle operating costs through smoother and more efficient transport movement.

 

Officials said the highway would play a key role in enhancing connectivity to coastal and tourism destinations while supporting economic activity and logistics infrastructure in Odisha.