Union Cabinet has approved a coastal highway connecting Rameshwar and Paradeep in Odisha at an estimated cost of Rs 83.0079 billion (Rs 83.0079 bn). The 160.18 km route will pass through the districts of Khurda, Puri, Kendrapada and Jagatsinghpur and is to be developed by the Ministry of Road Transport and Highways in two packages under the Hybrid Annuity Model. The project aims to strengthen coastal connectivity and reduce congestion on existing corridors.

The government expects the new road to cut travel time by two hours thirty minutes between key points along the eastern coast and to provide direct access to major tourist sites in the state. The Rameshwar to Konark package, a four?lane stretch of 79.4 km, attracted 10 bids, while the Konark to Paradeep package, an 80.7 km two?lane section, received seven bids. The National Highways Authority of India reported strong bidder interest during prequalification and tendering stages.

The route has been planned with a design speed of 100 km per hour to support faster and smoother movement of passengers and freight. Authorities expect the highway to offer an alternative to National Highway 16 and National Highway 316, thereby easing traffic through Khordha, Bhubaneswar and Cuttack and along the existing coastal link to Puri and Konark. The project is anticipated to support tourism, transport, trade and local industry by improving road access.

Construction is to be delivered in two packages under the Hybrid Annuity Model with implementation and supervision by the ministry and relevant agencies. The government has allocated funding and set procurement processes in motion following Cabinet approval, with contracts to be awarded to successful bidders. Officials indicate that the corridor will form part of broader efforts to enhance coastal infrastructure in the region.