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Cabinet Approves ₹8,300 Crore Odisha Coastal Highway to Strengthen Freight Connectivity

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June 5, 2026 • 0 Comments
Cabinet Approves ₹8,300 Crore Odisha Coastal Highway to Strengthen Freight Connectivity
Cabinet Approves ₹8,300 Crore Odisha Coastal Highway to Strengthen Freight Connectivity

The Union Cabinet has approved the construction of a new coastal highway linking Rameshwar and Paradip in Odisha, a project expected to improve freight movement, reduce transit times and strengthen connectivity across key economic centres along the state's coastline. The project carries an estimated investment of ₹8,300 crore and will be developed under the Hybrid Annuity Model (HAM). 

Approved by the Cabinet Committee on Economic Affairs (CCEA), the 160.18-km corridor will pass through the districts of Khurda, Puri, Kendrapada and Jagatsinghpur. The new route is designed to address capacity and operational constraints on existing road links that currently handle a mix of local and long-distance traffic. 

The project will be executed in two phases. The first package includes a four-lane access-controlled highway between Rameshwar and Konark, while the second package involves the development of a two-lane road with paved shoulders from Konark to Paradip. Both sections have been designed for vehicle speeds of up to 100 kmph. 

From a logistics perspective, the highway is expected to improve access to major economic and transport assets across the region. Government estimates indicate that the corridor will connect nine economic nodes and five logistics hubs, including ports, rail infrastructure and industrial clusters. The project aligns with the PM GatiShakti framework, which focuses on integrated multimodal infrastructure development. 

Officials said the existing road network, particularly stretches connecting Puri, Satapada and Konark, faces operational challenges due to heavy local traffic and roadside development. The new corridor is intended to provide a more efficient route for both passenger and cargo transportation while reducing congestion on existing highways. 

Upon completion, travel time between Rameshwar and Paradip is expected to be reduced by approximately two and a half hours. The government also expects the project to lower vehicle operating costs, improve fuel efficiency and support more reliable freight movement along Odisha's coast.

The corridor is expected to support industries including fisheries, food processing, manufacturing and export-oriented businesses by providing improved access to ports and logistics infrastructure. It is also projected to generate substantial employment during the construction phase through both direct and indirect jobs.

Follow CARGOCONNECT for more such updates. 

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