Cabinet Approves ₹8,300 Crore Coastal Highway in Odisha

Government expects the project to strengthen supply chains and improve India's overall Logistics Performance Index by enhancing freight movement efficiency.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the construction of a new coastal highway connecting Rameshwar and Paradeep in Odisha at an estimated cost of ₹8,300.79 crore. The project will be developed under the Hybrid Annuity Model (HAM) and cover a total length of 160.18 kilometres across the districts of Khurda, Puri, Kendrapada and Jagatsinghpur. The highway is expected to significantly improve connectivity along Odisha's coastline, reduce travel time, strengthen logistics infrastructure and support economic development in the region.

Modern Highway to Improve Coastal Connectivity

The project has been divided into two packages. The first package involves the construction of a 79.40-kilometre four-lane access-controlled highway between Rameshwar and Konark. The second package consists of an 80.78-kilometre two-lane highway with paved shoulders connecting Konark and Paradeep. Both stretches have been designed for speeds of up to 100 kilometres per hour, allowing faster and safer travel across the coastal corridor.

Officials noted that the existing road network between Puri, Satapada and Konark suffers from poor geometry, heavy roadside development and substantial local traffic movement, making long-distance travel slow and inefficient. The new highway is expected to provide an alternative high-speed corridor that will ease congestion and improve transportation efficiency.

Boost for Logistics, Industry and Tourism

The project has been planned in accordance with PM GatiShakti principles and will connect nine economic nodes and five major logistics nodes. Key logistics hubs linked by the corridor include Puri Railway Station, the proposed Puri Airport, Astarang Port, Paradeep Port and the Multi-Modal Logistics Park at Jagatsinghpur. The corridor will also improve connectivity to several important economic centres, including Special Economic Zones in Bhubaneswar and Khordha, a Mega Food Park in Bhubaneswar, pharmaceutical clusters in Cuttack and fishing clusters in Paradeep, Konark, Puri, Jagatsinghpur and Kendrapada.

Government expects the project to strengthen supply chains and improve India's overall Logistics Performance Index by enhancing freight movement efficiency. The improved connectivity is also likely to benefit tourism by providing easier access to popular destinations such as Puri and Konark.

Travel Time to Reduce by Over Two Hours

Upon completion, the highway is expected to reduce travel time between Rameshwar and Paradeep by approximately two hours and thirty minutes. The project is also expected to lower fuel consumption, reduce carbon emissions and decrease vehicle operating costs for both passenger and freight transport.

Construction activities are projected to generate significant employment opportunities, with an estimated 53.61 lakh direct man-days and 67.01 lakh indirect man-days of work. According to official projections, the corridor is expected to witness strong traffic volumes. The Rameshwar-Konark section is estimated to handle an Annual Average Daily Traffic (AADT) of 10,437 Passenger Car Units (PCUs) during 2027-28, while the Konark-Paradeep section is expected to carry 7,249 PCUs.

The project will be implemented with a concession period of 17.5 years, including 2.5 years for construction and 15 years for operation and maintenance. Officials believe the new coastal highway will serve as a major infrastructure catalyst for Odisha by improving mobility, supporting industrial growth, enhancing logistics efficiency and promoting balanced regional development along the state's coastline.