Cabinet Clears ₹8,307 Cr Capital Region Ring Road Project to Decongest Odisha

Beyond economic benefits, the project is expected to reduce urban pollution in Cuttack, Khordha, and Bhubaneswar by shifting heavy-duty vehicles out of city centers.

 

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has given its nod for the construction of a 6-lane Access-Controlled Capital Region Ring Road (Bhubaneswar Bypass) in Odisha. The project, spanning 110.875 km, will be executed on the Hybrid Annuity Mode (HAM) at a total capital cost of ₹8,307.74 crore.

Tackling Congestion in Key Urban Corridors

Currently, the stretch between Rameshwar and Tangi on the existing National Highway witnesses severe congestion due to the high traffic volume flowing through Khordha, Bhubaneswar, and Cuttack. These cities, being highly urbanized, face mounting pressure from commercial and passenger vehicles. The new ring road project aims to bypass these choke points, creating a Greenfield 6-lane highway designed for access-controlled, high-speed travel.

By diverting heavy commercial traffic, the project will significantly improve urban mobility, reduce travel delays, and minimize road accidents in congested stretches. It is also expected to cut down fuel consumption and vehicle operating costs, contributing to a reduction in logistics costs across the region.

Strategic Connectivity and Integration

The project alignment will seamlessly integrate with major national and state highways, enhancing Odisha’s connectivity with the rest of eastern India:

• Three National Highways: NH-55, NH-57, NH-655

• One State Highway: SH-65

In addition, the corridor will provide connectivity to:

• 10 Economic Nodes

• 4 Social Nodes

• 5 Logistic Nodes

The bypass will also enhance multi-modal integration by linking with:

• 1 Major Railway Station

• 1 Airport (Biju Patnaik International Airport, Bhubaneswar)

• 1 proposed Multi-Modal Logistics Park (MMLP)

• 2 Major Ports (Paradip Port and Dhamra Port)

This integrated network will facilitate faster and more efficient movement of goods and passengers, giving a major boost to Odisha’s role as a logistics hub in eastern India.

Boost to Regional Economy and Employment

The ring road is set to unlock significant economic opportunities by improving access to industrial corridors, ports, and religious centers, including Puri and Bhubaneswar. The improved connectivity is expected to spur industrial growth, boost trade, and strengthen Odisha’s position as a gateway for commerce in eastern India.

The construction phase will also bring massive employment opportunities. It is projected to generate approximately:

• 74.43 lakh person-days of direct employment

• 93.04 lakh person-days of indirect employment

This will not only provide jobs in the construction sector but also benefit industries such as logistics, hospitality, and retail along the project corridor.

Social and Environmental Impact

Beyond economic benefits, the project is expected to reduce urban pollution in Cuttack, Khordha, and Bhubaneswar by shifting heavy-duty vehicles out of city centers. Faster travel and reduced idling will also cut greenhouse gas emissions. The road is being designed with modern safety features and eco-friendly measures to ensure sustainable development.

A Milestone for Odisha’s Growth

Once completed, the Capital Region Ring Road will serve as a lifeline for the state by decongesting key cities, enabling smoother freight movement, and strengthening regional connectivity. It will open new avenues for industrial investment, trade, tourism, and socio-economic development across Odisha and adjoining states.

The approval of this ambitious project reflects the central government’s continued commitment to infrastructure-led growth, aligning with the PM GatiShakti National Master Plan to transform India’s logistics and transport networks.