The Union Cabinet, chaired by Narendra Modi, has approved the widening and strengthening of a section of National Highway-326 in Odisha, upgrading the existing two-lane road to a two-lane highway with paved shoulders. The project covers the stretch from km 68.600 to km 311.700 and will be implemented under the National Highways (Original) programme on engineering, procurement and construction mode. The total capital cost has been approved at Rs 15.26 billion, including a civil construction component of Rs 9.67 billion. The project is targeted for completion within 24 months from the appointed date for each package, followed by a five-year defect liability and maintenance period. The upgradation is expected to significantly improve travel efficiency and road safety along the Mohana–Koraput section, which currently suffers from sub-standard geometry, sharp curves, steep gradients and narrow carriageway width. These constraints limit the movement of heavy vehicles and restrict freight flow to coastal ports and industrial centres. The project will address these issues through geometric corrections, pavement strengthening, removal of accident-prone black spots and gradient improvements, enabling safer and more efficient movement of goods and passengers. The improved corridor is expected to enhance connectivity with major economic and logistics routes, including NH-26, NH-59, NH-16 and the Raipur–Visakhapatnam corridor. It will also strengthen last-mile access to key infrastructure such as Gopalpur port, Jeypore airport and nearby railway stations. The highway serves several industrial units and institutions, including JK Paper, NALCO, IMFA, Utkal Alumina, Vedanta, HAL, the Central University of Odisha and Koraput Medical College, as well as important tourism destinations. According to the economic appraisal, the project has an estimated economic internal rate of return of 17.95 per cent, while the financial internal rate of return is negative, reflecting its social and non-market benefits. The economic justification is driven by reduced travel time and vehicle operating costs, safety improvements and estimated time savings of about 2.5 to 3 hours, along with a distance reduction of roughly 12.46 km between Mohana and Koraput after geometric improvements. Implementation will involve established construction and quality assurance technologies, with monitoring through network survey vehicles, drone-based mapping and a project monitoring information system, supported by on-ground supervision from an appointed authority engineer. The project is expected to deliver faster and safer connectivity in southern Odisha, benefiting Gajapati, Rayagada and Koraput districts, while supporting industrial growth, tourism, access to education and healthcare, and broader socio-economic development. Construction and maintenance activities are also likely to generate direct and indirect employment and support local construction and logistics industries.