The Cabinet Committee on Economic Affairs has approved the Odisha Coastal Highway Project, a new road corridor that will run along Odisha’s coastline from Rameshwar to Paradeep. The project will be built under the Hybrid Annuity Model and will cost Rs 8,300.79 crore. The Odisha Coastal Highway will cover 160.18 km and pass through Khurda, Puri, Kendrapada, and Jagatsinghpur districts.
According to the government, the project has been planned to address rising traffic demand along Odisha’s coast. The existing NH 16 already carries heavy traffic through Bhubaneswar and Cuttack, while NH 316 between Bhubaneswar, Puri, Satapada, and Konark faces congestion because of roadside development and local traffic. Construction is expected to take two and a half years. After that, the selected concessionaire will operate and maintain the highway for 15 years under the project agreement.
Impact of highway from Rameshwar to Paradeep
Image Source: PIB
The Odisha Coastal Highway has been divided into two construction packages. The first package will build a 79.40 km four lane access controlled highway between Rameshwar and Konark. The second package will build an 80.78 km two lane highway with paved shoulders between Konark and Paradeep.
Most of the corridor will be built on a fresh alignment. Only a small stretch in the first package involves work on an existing road. This approach allows the highway to avoid densely built sections and improve travel speeds along the coastal route. The official Odisha Coastal Highway Map released with the Cabinet approval shows the corridor connecting Rameshwar near NH 16 to Konark before extending north toward Paradeep Port.
How will the highway cut travel time?
One of the biggest changes from the Odisha Coastal Highway Project is shorter travel time between Rameshwar and Paradeep. The government estimates the new route will reduce the journey by about two hours and 30 minutes after the highway becomes operational.
The highway has been designed for speeds of up to 100 km per hour. It will provide a separate route for long distance traffic and reduce dependence on the busy NH 316 corridor, where local traffic and roadside construction often slow vehicle movement.
The new road is also expected to improve connectivity between Bhubaneswar, Puri, Konark, Kendrapada, Jagatsinghpur, and Paradeep. It will provide a direct coastal link for people traveling between major tourism destinations and industrial areas.
The highway is being built under HAM
The Odisha Coastal Highway will be developed through the Hybrid Annuity Model, which is commonly used for large highway projects in India. Under this model, the government pays part of the project cost during construction, while the private developer invests the remaining amount.
NHAI will make fixed annuity payments to the developer over the concession period instead of allowing the company to recover costs through toll revenue. The concession period for both packages is 17.5 years, including construction and long-term maintenance.
Why this coastal highway matters for Odisha
The government has linked the Odisha Coastal Highway Project with the PM GatiShakti National Master Plan. The corridor will connect nine economic nodes and five logistics nodes across the state.
The highway will improve access to Paradeep Port, Astarang Port, the proposed Puri Airport, Puri Railway Station, and the Multi Modal Logistics Park in Jagatsinghpur. It will also strengthen road links to fishing clusters, special economic zones, and industrial hubs in the region.
The project also improves connectivity to major tourist destinations, including Jagannath Temple in Puri and the Konark Sun Temple. The government estimates the project will generate more than 53 lakh direct man-days and 67 lakh indirect man-days during construction.
With Cabinet approval in place and the bidding process underway, the Odisha Coastal Highway Project has entered the next stage of implementation. Once completed, the new coastal corridor will provide a faster road link between Rameshwar and Paradeep while improving connectivity across Odisha’s eastern coastline.
Key takeaways from the Odisha Coastal Highway Project
The Odisha Coastal Highway Project is more than a new road corridor. It brings together transport, logistics, tourism, and port connectivity through a single infrastructure project. The highway also reflects the government’s focus on building new coastal routes instead of expanding already congested highways. With the Cabinet approval completed and the bidding process in progress, the project has entered a new phase where planning is giving way to on-ground execution.
