The Union Cabinet has approved a major coastal highway project in Odisha, paving the way for the construction of a 160.18-km corridor between Rameshwar and Paradip at an estimated cost of ₹8,300.79 crore. The project is expected to significantly improve connectivity along the state’s coastline, enhance logistics efficiency, and support economic development in several coastal districts.
Approved by the Cabinet Committee on Economic Affairs (CCEA), the project will be developed under the Hybrid Annuity Model (HAM), a public-private partnership framework that combines government support with private sector participation.
The proposed corridor will pass through the districts of Khurda, Puri, Kendrapada, and Jagatsinghpur. It is designed to provide a faster and more efficient alternative to the existing road network, which has been facing increasing congestion due to urbanisation, ribbon development, and growing local traffic. Areas such as the Puri-Konark and Puri-Satapada stretches have experienced significant travel delays in recent years, highlighting the need for upgraded infrastructure.
The highway project has been divided into two construction packages. The first package involves the development of a 79.4-km four-lane access-controlled highway between Rameshwar and Konark. Nearly 77 km of this stretch will be built on a greenfield alignment, allowing for modern design standards and improved traffic flow. The estimated cost of this package is ₹5,304.8 crore.
The second package consists of an 80.78-km two-lane highway with paved shoulders connecting Konark and Paradip. This entire section will also be developed on a greenfield alignment and carries an estimated investment of ₹2,995.99 crore.
Designed for speeds of up to 100 kmph, the corridor is expected to reduce travel time between Rameshwar and Paradip by approximately two and a half hours. The improved road network will facilitate faster movement of both passengers and freight, boosting economic activity across Odisha’s coastal belt.
The project aligns with the PM GatiShakti National Master Plan and is expected to strengthen connectivity to nine economic nodes and five logistics hubs. It will benefit several key industrial and commercial centres, including the Special Economic Zones (SEZs) in Bhubaneswar and Khordha, the Mega Food Park near Bhubaneswar, pharmaceutical clusters around Cuttack, and important fishing hubs in Paradip, Konark, Puri, Jagatsinghpur, and Kendrapada.
Additionally, the highway will improve access to major transport infrastructure such as Puri Railway Station, the proposed Puri Airport, Astarang Port, Paradip Port, and the Multi-Modal Logistics Park at Jagatsinghpur.
