Cabinet clears ₹83 billion coastal highway project in Odisha

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the construction of a new coastal highway from Rameshwar to Paradeep in Odisha under the Hybrid Annuity Model (HAM). The project will be developed in two packages covering a combined length of 160.18 km at a total capital cost of ₹83 billion.

The highway will pass through the districts of Khurda, Puri, Kendrapada and Jagatsinghpur, and is aimed at improving connectivity, reducing travel time and supporting regional economic development.

The project includes a four-lane highway from Rameshwar to Konark under Package 1 and a two-lane highway with paved shoulders from Konark to Paradeep under Package 2. The corridor has been designed for a speed of 100 km per hour, which is expected to improve travel efficiency across the region.

The new highway is being developed to address limitations in the existing road network. While NH-16, part of the Golden Quadrilateral, already serves as a six-lane highway connecting major towns such as Khordha, Bhubaneswar and Cuttack, NH-316 links Bhubaneswar with Puri and extends towards Satapada and Konark. However, the Puri-Satapada and Puri-Konark stretches have poor road geometry, nearly 40 per cent ribbon development and heavy local commuter traffic, making them unsuitable for smooth long-distance travel.

The project is aligned with the PM GatiShakti initiative and will provide connectivity to nine economic nodes and five logistics nodes. It is also expected to contribute positively to the country's Logistics Performance Index (LPI).

Upon completion, travel time between Rameshwar and Paradeep is expected to be reduced by around two hours and 30 minutes. The highway will provide safer, faster and uninterrupted movement for passenger and freight traffic, while also reducing fuel consumption, carbon emissions and vehicle operating costs.