Infrastructure – Odisha Coastal Highway Project Set to Strengthen Regional Connectivity
Infrastructure – The Union Cabinet has approved a major road infrastructure project aimed at improving transportation links along Odisha’s coastline. Chaired by Prime Minister Narendra Modi, the Cabinet Committee on Economic Affairs (CCEA) cleared the construction of a new coastal highway connecting Rameshwar and Paradeep. The project will be developed under the Hybrid Annuity Model (HAM) and will span a total distance of 160.18 kilometres. The approved investment for the project stands at ₹8,300.79 crore.

Highway to Pass Through Four Key Districts
According to official details, the proposed highway corridor will run through the districts of Khurda, Puri, Kendrapada, and Jagatsinghpur. The route is expected to provide an alternative and more efficient transport network for both passenger and commercial vehicles operating in the region.
At present, National Highway-16 serves as a crucial transport corridor in Odisha and forms part of the Golden Quadrilateral network. The six-lane highway passes through major urban centres including Khordha, Bhubaneswar, and Cuttack, carrying a significant volume of traffic throughout the year.
Existing Road Conditions Present Challenges
The current NH-316 corridor connects Bhubaneswar with Puri and extends further toward Konark and Satapada. However, several sections along the Puri-Satapada and Puri-Konark stretches face operational challenges due to inadequate road geometry and increasing roadside development.
Officials noted that nearly 40 percent of the corridor has ribbon development, leading to heavy local traffic movement along the route. These conditions often affect travel efficiency and reduce the suitability of the road for long-distance transportation.
Two Construction Packages Planned
The new coastal highway project has been divided into two separate construction packages. The first package, stretching from Rameshwar to Konark, will feature a four-lane highway. The second package, extending from Konark to Paradeep, will be developed as a two-lane road with paved shoulders.
The proposed alignment has been designed for a speed limit of 100 kilometres per hour. Authorities believe the upgraded road infrastructure will significantly improve travel conditions and enhance connectivity across the four districts covered by the project.
Support for Economic and Logistics Growth
The highway project is also expected to contribute to broader economic development in the coastal region. By improving access between important locations, it may facilitate smoother movement of goods and services while supporting local industries and business activities.
Officials stated that the initiative aligns with the objectives of the PM GatiShakti National Master Plan. The corridor is expected to provide connectivity to nine economic nodes and five logistics nodes, helping strengthen the country’s transport and supply-chain network.
Reduced Travel Time and Lower Transport Costs
Once completed, the new highway is projected to cut travel time between Rameshwar and Paradeep by approximately two and a half hours. The improved route is expected to offer uninterrupted and safer movement for both freight and passenger vehicles.
In addition to faster travel, authorities anticipate reductions in fuel consumption, vehicle operating expenses, and carbon emissions. These benefits are expected to improve transport efficiency while supporting environmental sustainability goals associated with modern infrastructure development.