New Delhi: In a bid to boost road connectivity and economic activity in Southern Odisha, the Union Cabinet on Wednesday approved the widening and strengthening of a key stretch of National Highway-326.
The project involves upgrading the highway from 68.600km to 311.700km to a two-lane configuration with paved shoulders under the NH(O) programme, to be executed in Engineering, Procurement and Construction mode.
Financial implications: The total capital cost of the project is estimated at Rs. 1,526.21 crore, which includes a civil construction cost of Rs. 966.79 crore.
Benefits: The upgradation of NH-326 is expected to make travel faster, safer, and more reliable, supporting the overall development of southern Odisha, according to an official statement. The project will particularly benefit the districts of Gajapati, Rayagada, and Koraput by improving access to markets, healthcare facilities, educational institutions, and employment opportunities. Enhanced connectivity is also expected to support local industries and tourism centres, contributing to inclusive regional growth.
Project details: The Mohana–Koraput section of NH-326 currently has sub-standard geometry, including intermediate or narrow two-lane stretches, deficient curves, and steep gradients. These limitations restrict the safe and efficient movement of heavy vehicles, reducing freight throughput to coastal ports and industrial centers. The approved project will upgrade the corridor to a two-lane road with paved shoulders, along with geometric improvements, including curve realignments and gradient corrections. It also includes the removal of accident-prone black spots and strengthening of the pavement, enabling safer and uninterrupted movement of goods and passengers while reducing vehicle operating costs.
The improved corridor will provide better connectivity from Mohana to Koraput and integrate with major economic and logistics routes, including NH-26, NH-59, NH-16, and the Raipur–Visakhapatnam corridor. It will also improve last-mile access to key infrastructure such as Gopalpur Port, Jeypore Airport, and multiple railway stations. The highway serves several important industrial and logistics hubs, including JK Paper, Mega Food Park, NALCO, IMFA, Utkal Alumina, Vedant, and HAL.
Impact and employment generation: The project aims to improve connectivity between the southern and eastern parts of Odisha, strengthening links between Gajapati, Rayagada, and Koraput districts and the rest of the State, as well as neighbouring Andhra Pradesh. Improved road infrastructure is expected to facilitate industrial growth, promote tourism, and enhance access to education and healthcare services, particularly in aspirational, tribal, and backward regions.
