THEBUSINESSBYTES
BUREAU
BHUBANESWAR,
JUNE 3, 2026
In a major infrastructure push with
far-reaching economic implications, the Union Cabinet has approved the
construction of a 160.18-km coastal highway connecting Rameshwar in Khurda
district with Paradip in Jagatsinghpur district at an estimated investment of ₹8,300.79
crore, paving the way for accelerated growth in tourism, trade, logistics and
industry across Odisha’s coastline.
The project, cleared by the Cabinet
Committee on Economic Affairs (CCEA) under the chairmanship of Prime Minister
Narendra Modi, will be implemented under the Hybrid Annuity Model (HAM) and is
being viewed as one of the most significant road infrastructure investments in
the state in recent years.
Welcoming the decision, Chief Minister
Mohan Charan Majhi described it as the beginning of “a new chapter” in Odisha’s
infrastructure journey. He expressed gratitude to Prime Minister Narendra Modi
and Union Minister for Road Transport and Highways Nitin Gadkari for extending
support to a project that is expected to transform the state’s coastal economy.
“This coastal highway will transform Odisha’s
coastal economy, reduce travel time by approximately 2.5 hours, and open new
avenues for tourism, industry, commerce, logistics, and overall economic
growth,” the Chief Minister said.
The highway will traverse the
districts of Khurda, Puri, Kendrapara and Jagatsinghpur, significantly
improving connectivity between key coastal destinations and industrial hubs.
The project will be executed in two phases, with the first phase covering a
79.4-km four-lane access-controlled corridor from Rameshwar to Konark, while
the second phase will comprise an 80.78-km two-lane highway with paved
shoulders from Konark to Paradip.
Officials said the corridor will be
integrated with existing national and state highway networks, including NH-316,
and will incorporate modern engineering standards that will enable vehicle
speeds of up to 100 km per hour. The improved road infrastructure is expected
to substantially reduce travel time and enhance freight movement, offering a
major boost to business and industrial activity in the region.
Beyond transportation benefits, the
project is expected to unlock new investment opportunities along Odisha’s
coastline. Plans for hospitality infrastructure, including hotels and food parks
along the route, are expected to stimulate tourism-led economic activity while
generating employment and supporting local enterprises.
The Chief Minister noted that the
approval reflects the Centre’s commitment to developing world-class
infrastructure in Odisha and will play a crucial role in the state’s long-term
development agenda. With environmental clearances expected shortly, authorities
are preparing to initiate construction, marking a significant step towards
building a modern coastal economic corridor and strengthening Odisha’s position
as a key growth engine on India’s eastern seaboard.
