Union Cabinet has approved a coastal highway connecting Rameshwar and Paradeep at an estimated cost of Rs 83.0079 billion. The project envisages a 160.18 km corridor that will pass through Khurda, Puri, Kendrapada and Jagatsinghpur districts and aims to reduce travel time by two hours thirty minutes. The scheme will be developed by the Ministry of Road Transport and Highways and executed under central oversight.

The Cabinet Committee on Economic Affairs approved the project under the Hybrid Annuity Model, to be implemented in two packages. Rameshwar to Konark Package I covers 79.4 km as a four?lane section and attracted 10 bids, while Konark to Paradeep Package II spans 80.7 km as a two?lane section and attracted seven bids. The National Highways Authority of India registered strong market interest during the bidding process.

The highway has been designed for a speed of 100 km per hour and will provide a direct coastal link to key tourist sites such as Sri Jagannath Temple, Puri Beach and the Konark Sun Temple. It is expected to offer an alternative alignment to National Highway 16 and National Highway 316, reducing congestion on existing inland corridors. At present National Highway 16 passes through Khordha, Bhubaneswar and Cuttack, while National Highway 316 connects Bhubaneswar with Puri and continues towards Satapada and Konark.

Officials noted that the route could support greater movement of passengers and freight and bolster regional trade and industrial activity along the eastern coast. The work will be undertaken in phases with detailed timelines to be announced by the ministry and contracting authorities. Stakeholders indicated high private sector interest, reflecting the scale of the project and the use of the Hybrid Annuity Model.