Highlights

• The CCEA approved a new coastal highway project in Odisha worth Rs 8,300.79 crore.
• The project will connect key economic and logistics nodes across four districts.
• Travel time between Rameshwar and Paradeep may reduce by around 2 hours and 30 minutes.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved the construction of a new coastal highway from Rameshwar to Paradeep in Odisha. The project will be developed under the Hybrid Annuity Model (HAM) and carries a combined capital cost of Rs 8,300.79 crore.

The highway project spans approximately 160.18 km and is divided into two packages. It is expected to improve connectivity across the districts of Khurda, Puri, Kendrapada, and Jagatsinghpur while supporting passenger and freight movement along Odisha’s coastal region.

Source: Analysis by Kalkine 

Two-Package Development Plan

The first package covers the Rameshwar–Konark stretch and will be developed as a four-lane access-controlled highway extending 79.40 km. The second package covers the Konark–Paradeep section, measuring 80.78 km, and will be built as a two-lane road with paved shoulders.

Package I includes 76.84 km of greenfield development and 2.56 km of brownfield expansion. Package II will be entirely greenfield in nature.

According to official estimates, the civil construction cost for the two packages is Rs 4,695.08 crore, while land acquisition and other pre-construction expenses amount to Rs 1,419.75 crore.

Addressing Existing Connectivity Challenges

The existing transport network in the region relies on NH-16 and NH-316. While NH-16 forms part of the Golden Quadrilateral corridor and already functions as a six-lane highway, NH-316 connects Bhubaneswar, Puri, Satapada, and Konark.

Authorities noted that the existing Puri–Satapada and Puri–Konark stretches face operational challenges due to poor road geometry, significant ribbon development, and high levels of local commuter traffic. These factors affect the efficiency of long-distance travel. The proposed coastal highway is designed for a speed of 100 km per hour, aiming to provide uninterrupted traffic flow and improved road safety.

Economic and Logistics Connectivity

The project aligns with the PM GatiShakti framework and is expected to strengthen connectivity between important economic and logistics centres.

According to project details, the corridor will connect nine economic nodes and five logistics nodes. Key economic assets linked to the route include Special Economic Zones in Bhubaneswar and Khordha, a Mega Food Park in Bhubaneswar, fishing clusters located in Paradeep, Konark, Jagatsinghpur, Puri, and Kendrapada, and a pharmaceutical cluster in Cuttack.

Important logistics nodes connected through the project include Puri Railway Station, Puri Airport, Astarang Port, Paradeep Port, and the Multi-Modal Logistics Park at Jagatsinghpur.

Travel Time Reduction and Environmental Benefits

Upon completion, the highway is expected to reduce travel time between Rameshwar and Paradeep by approximately 2 hours and 30 minutes.

The government has also indicated that the project could lower fuel consumption, reduce carbon emissions, and decrease vehicle operating costs. Improved travel efficiency may support smoother transportation of goods and passengers along Odisha's coastline.

Employment Generation Outlook

The project is expected to generate substantial employment during construction and associated activities. Official estimates indicate direct employment generation potential of 53.61 lakh man-days and indirect employment generation of 67.01 lakh man-days. Traffic projections for FY 2027-28 estimate average daily traffic of 10,437 PCUs for Package I and 7,249 PCUs for Package II.

Key Risks to Monitor

• Delays in land acquisition could affect project timelines.
• Construction cost escalation may impact overall expenditure.
• Traffic projections may differ from actual usage levels.
• Environmental clearances could influence project execution schedules.

Summary

The Cabinet Committee on Economic Affairs has approved a Rs 8,300.79 crore coastal highway project in Odisha connecting Rameshwar and Paradeep. Spanning about 160 km across two packages, the project aims to improve transport connectivity, reduce travel time, support logistics networks, and link important economic nodes. The development is also expected to generate employment and enhance freight movement efficiency.

FAQs

Q: What is the total cost of the Odisha coastal highway project?
A: The approved project carries a total capital cost of approximately Rs 8,300.79 crore.

Q: Which districts will the coastal highway pass through?
A: The highway will pass through Khurda, Puri, Kendrapada, and Jagatsinghpur districts in Odisha.

Q: How much travel time could the project save?
A: The government estimates travel time reduction of about 2 hours and 30 minutes.