Odisha Coastal Highway Project 2026: Cabinet Approves ₹8,300 Crore Rameshwar–Paradeep Coastal Corridor

The Government of India has approved one of Odisha’s most significant highway infrastructure projects. The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, has sanctioned the construction of a new Coastal Highway from Rameshwar to Paradeep with a total investment of ₹8,300.79 crore. The 160.18 km corridor will be developed under the Hybrid Annuity Model (HAM) and is expected to transform transportation, tourism, logistics, and economic development across Odisha’s coastal districts. The project will improve connectivity between major tourist destinations, ports, industrial hubs, and economic centers while reducing travel time and enhancing road safety.

Project Overview

The approved Coastal Highway will connect Rameshwar, Konark, Puri, Kendrapada, and Paradeep through a modern highway corridor designed for high-speed and efficient transportation. The project has been divided into two construction packages.

Package-I: Rameshwar to Konark

The first package involves the construction of a 4-lane access-controlled highway stretching 79.40 km from Rameshwar to Konark.

Key Features:

• 4-Lane Access Controlled Highway
• Design Speed: 100 km/h
• Greenfield Length: 76.84 km
• Brownfield Length: 2.56 km
• Total Capital Cost: ₹5,304.80 Crore
• Civil Construction Cost: ₹3,129.06 Crore

This section will significantly reduce congestion on existing roads and provide faster access to major tourist destinations.

Package-II: Konark to Paradeep

The second package covers 80.78 km between Konark and Paradeep.

Key Features:

• 2-Lane Highway with Paved Shoulder
• Design Speed: 100 km/h
• Entirely Greenfield Alignment
• Total Capital Cost: ₹2,995.99 Crore
• Civil Construction Cost: ₹1,566.02 Crore

This segment will strengthen connectivity to Paradeep Port and support industrial and logistics activities across the coastal region.

Districts Benefiting from the Project

The coastal highway will pass through four major districts of Odisha:

• Khurda
• Puri
• Kendrapada
• Jagatsinghpur

The project will ease traffic pressure on existing NH-16 and NH-316 corridors while providing an alternative high-speed route along Odisha’s coastline.

Economic and Logistics Benefits

The highway has been planned under the PM GatiShakti framework and will connect multiple economic and logistics nodes.

Economic Nodes

• Bhubaneswar SEZ
• Khordha (Khandagiri) SEZ
• Mega Food Parks
• Fishing Clusters at Paradeep, Konark, Puri, Kendrapada and Jagatsinghpur
• Pharma Cluster at Cuttack

Logistics Nodes

• Puri Railway Station
• Proposed Puri Airport
• Astarang Port
• Paradeep Port
• Multi Modal Logistics Park (MMLP), Jagatsinghpur

Employment Generation

The project is expected to create substantial employment opportunities during construction and operation.

The project will boost local businesses, tourism services, transport operations, and construction-related industries.

Traffic Projections

The projected traffic volume demonstrates the importance of the corridor.

This traffic demand highlights the need for a dedicated coastal transportation corridor.

Why This Project Matters

The existing NH-316 route between Puri, Konark, and Satapada faces heavy local traffic, ribbon development, and poor geometric standards. These limitations reduce travel efficiency and increase congestion.

The new coastal highway will:

• Reduce travel time significantly
• Improve road safety
• Enhance tourism connectivity
• Strengthen port access
• Boost regional economic growth
• Support industrial expansion
• Improve logistics efficiency
• Increase investment opportunities in coastal Odisha

Extra Safety Tips 2026

• Follow speed limits even on access-controlled highways.

• Use designated entry and exit points only.

• Avoid stopping on highway shoulders unnecessarily.

• Maintain safe distance from heavy commercial vehicles.

• Always wear seat belts and follow lane discipline.

FAQs

Q1. What is the total cost of the Odisha Coastal Highway Project?

The project has a total approved capital cost of ₹8,300.79 crore.

Q2. What is the total length of the coastal highway?

The highway will have a total length of 160.18 km.

Q3. Which districts will the highway pass through?

Khurda, Puri, Kendrapada, and Jagatsinghpur districts.

Q4. What is the project execution model?

The project will be developed under the Hybrid Annuity Model (HAM).

Q5. How much employment will be generated?

Approximately 53.61 lakh direct and 67.01 lakh indirect man-days of employment.

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Conclusion

The approval of the Rameshwar–Paradeep Coastal Highway marks a major milestone in Odisha’s infrastructure development journey. With an investment exceeding ₹8,300 crore, the project will not only improve transportation efficiency but also strengthen tourism, logistics, port connectivity, and industrial growth across the state’s coastal belt. By integrating key economic and logistics nodes under the PM GatiShakti initiative, the highway is expected to generate significant employment and unlock new economic opportunities. Once completed, the corridor will become a critical transportation backbone supporting Odisha’s long-term growth and regional development.

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