Rs 8,300 crore coastal highway project approved for Odisha

Bhubaneswar: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved the construction of the long-pending coastal highway from Rameshwar in Khurda district to Paradip in Jagatsinghpur of Odisha under Hybrid Annuity Model (HAM). The project, to be executed in two packages, will span 160 km at an estimated cost of Rs 8,300.79 crore.On completion, the travel time between Rameshwar and Paradip, which is around five-and-a-half hours, is expected to reduce by around two hours and 30 minutes.Under the HAM, the Centre will provide 40% of the project cost as construction support, while the remaining 60% will be paid to the developer as annuity after completion.First conceived in 2015, the project includes a four-lane 79.4-km stretch from Rameshwar to Konark (Package 1) and two-lane road with paved shoulders over 80.78 km from Konark to Paradip (Package 2). The corridor, designed for a speed of 100 kmph, will improve connectivity across Khurda, Puri, Kendrapada and Jagatsinghpur districts, boosting regional mobility and economic activity, govt authorities said.Welcoming the decision, chief minister Mohan Charan Majhi said the project would mark a new phase in Odisha’s infrastructure push. “This landmark highway across key coastal districts will cut travel time significantly and open up opportunities in tourism, trade, logistics and economic growth. It will accelerate the transformation of the coastal economy and improve quality of life,” he posted on social media.Aligned with PM GatiShakti principles, the highway will link nine economic and five logistics nodes, which are expected to improve the country’s Logistics Performance Index.Union education minister Dharmendra Pradhan said the project would be a game-changer under the ‘Purvodaya Mission’. Blue economy, coastal tourism and industrialisation would gain momentum, creating large-scale employment opportunities for local youth, he added.The highway will also facilitate safer and faster movement of passenger and freight traffic, while lowering fuel consumption, carbon emissions and vehicle operating costs.At present, the six-lane NH-16 — part of Golden Quadrilateral project — passes through Khurda, Bhubaneswar and Cuttack. National Highway-316 connects Bhubaneswar to Puri, and extends to Satapada and Konark. However, poor road geometry, ribbon development and heavy local traffic along Puri-Satapada and Puri-Konark stretches hinder smooth long-distance travel.