Bhubaneswar: The Union Cabinet has approved the construction of a new coastal highway in Odisha at an estimated cost of Rs 8,300.79 crore, paving the way for a major transport corridor that will connect key tourism destinations with the state’s maritime and logistics infrastructure.
The project, cleared by the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi, will involve the development of a 160.18-km highway between Rameshwar and Paradip under the Hybrid Annuity Model.
Spread across Khurda, Puri, Kendrapada, and Jagatsinghpur districts, the proposed corridor is expected to ease pressure on existing road networks while improving connectivity along Odisha’s coastline, according to an official statement.
Officials said the project has been planned in view of growing traffic demand and limitations of the existing route. While National Highway-16, a part of the Golden Quadrilateral, serves as the state’s principal north-south corridor, the existing road network connecting Puri, Konark, and Satapada faces congestion due to ribbon development and heavy local traffic movement.
The new highway will be developed in two packages. The stretch from Rameshwar to Konark will be constructed as a four-lane highway, while the Konark-Paradip section will have two lanes with paved shoulders. The corridor is being designed for speeds of up to 100 km per hour, enabling faster and safer travel across the coastal districts.
Beyond improving passenger movement, the project is expected to strengthen freight transportation by enhancing access to Paradip, one of the country’s major ports. The highway will also support economic activities across coastal Odisha by improving links between industrial, tourism, and logistics centres.
According to the government, the corridor aligns with the PM GatiShakti National Master Plan and will provide connectivity to nine economic nodes and five logistics nodes, a move expected to improve supply-chain efficiency and support the country’s logistics ecosystem.
Once completed, the highway is projected to reduce travel time between Rameshwar and Paradip by nearly two and a half hours. Authorities also expect the project to lower fuel consumption, reduce vehicle operating costs, and curb carbon emissions through smoother traffic flow and shorter travel durations.
The government said the project would contribute to regional development by improving accessibility, facilitating trade, and promoting tourism along Odisha’s coastline.
