New Delhi, June 03: 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 implemented under the Hybrid Annuity Model (HAM) and developed in two packages covering a total length of 160.18 kilometres. The highway is expected to significantly improve passenger and freight movement along Odisha’s coastal corridor.
According to the government, the new highway will reduce travel time between Rameshwar and Paradeep by approximately two and a half hours while providing safer, faster and uninterrupted connectivity.
The project is also expected to generate economic and environmental benefits through lower fuel consumption, reduced carbon emissions and decreased vehicle operating costs.
The proposed corridor forms part of a strategic transport network linked to the Golden Quadrilateral. While the existing highway network passes through major urban centres such as Khordha, Bhubaneswar and Cuttack, sections of the current route face capacity and design limitations.
The existing NH-316 corridor connecting Bhubaneswar, Puri, Satapada and Konark is characterised by poor road geometry, extensive ribbon development and heavy local traffic movement, making it less efficient for long-distance transportation.
To address these challenges, the project will develop a four-lane highway from Rameshwar to Konark under Package-I and a two-lane highway with paved shoulders from Konark to Paradeep under Package-II. The corridor is being designed for a speed of 100 km per hour to improve travel efficiency and safety.
The highway will pass through the districts of Khurda, Puri, Kendrapada and Jagatsinghpur, enhancing regional connectivity and supporting economic development across coastal Odisha.
The project is aligned with the PM GatiShakti National Master Plan and is expected to strengthen multimodal connectivity. It will connect nine economic nodes and five logistics nodes, facilitating smoother movement of goods and improving supply chain efficiency.
Officials said the enhanced connectivity is expected to boost trade, tourism, industrial activity and regional mobility while contributing positively to India’s Logistics Performance Index (LPI).
The project forms part of the government’s broader infrastructure development strategy aimed at improving transportation efficiency, reducing logistics costs and supporting long-term economic growth.
