Cabinet approves Odisha coastal highway project worth ₹8,300 crore

New Delhi: The Cabinet Committee on Economic Affairs has approved the Odisha coastal highway project with an investment of ₹8,300.79 crore. The project will build a new highway corridor between Rameshwar and Paradeep.

The corridor will cover 160.18 kilometres across Khurda, Puri, Kendrapada and Jagatsinghpur districts. Officials said it will improve connectivity, strengthen logistics and support economic growth along Odisha’s coastline.

Authorities will develop the project under the Hybrid Annuity Model (HAM) in two packages. They will build a four-lane access-controlled highway from Rameshwar to Konark. They will also construct a two-lane road with paved shoulders from Konark to Paradeep.

Officials said the existing Puri-Satapada and Puri-Konark routes face heavy congestion and roadside development. Therefore, the new corridor will offer a faster route for long-distance travel.

The highway will support speeds of up to 100 kilometres per hour. As a result, passenger and freight movement will become more efficient.

Odisha coastal highway gets Cabinet approval

Odisha coastal highway to strengthen logistics

Odisha coastal highway follows the PM GatiShakti framework. It will connect nine Economic Nodes and five Logistic Nodes.

The corridor will link special economic zones, a mega food park, fishing clusters and a pharmaceutical cluster. It will also connect Puri Railway Station, Puri Airport, Astarang Port, Paradeep Port and the Multi-Modal Logistics Park at Jagatsinghpur.

Officials expect the project to cut travel time between Rameshwar and Paradeep by about two hours and 30 minutes. Consequently, transport costs and delays will decline.

The corridor will reduce fuel consumption, lower carbon emissions and cut vehicle operating costs. Moreover, it will improve logistics efficiency and strengthen India’s Logistics Performance Index.

Official estimates show the project will generate 53.61 lakh direct man-days and 67.01 lakh indirect man-days of employment during construction and related activities.