Industry Odisha Bureau, June 3: The Union Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, today approved the construction of new coastal Highway from Rameshwar to Paradeep on Hybrid Annuity Model (HAM) in Odisha under two packages with a combined total length of 160.18 km and combined total capital cost of Rs8, 300.79 crore.
The project section of new coastal Highway from Rameshwar to Paradeep passes through Khurda, Puri, Kendrapada and Jagatsinghpur Districts of Odisha, existing road network of NH-16 is part of the Golden Quadrilateral and is already a 6-lane highway passing through major towns Khordha, Bhubaneswar, and Cuttack.
The existing NH-316 connects Bhubaneswar–Puri and further extends towards Satapada and Konark. The existing road geometry along the Puri–Satapada and Puri–Konark stretches is poor, with nearly 40 percent ribbon development along the corridor and high levels of roadside local commuter traffic, making the corridor unsuitable for smooth and efficient long-distance vehicular movement.
Taking to social media site X, Chief Minister Mohan Charan Majhi said a new chapter in Odisha’s infrastructure development begins with the approval of the Rs 8,300 crore Coastal Highway from Rameshwar to Paradeep by the Cabinet Committee on Economic Affairs under the visionary leadership of Prime Minister Narendra Modi,
Spanning key coastal districts, this landmark project will strengthen connectivity, reduce travel time by nearly two and a half hours, and create new opportunities for tourism, trade, logistics and economic growth, he said.
The CM said the Coastal Highway will accelerate the transformation of Odisha’s coastal economy, enhance regional connectivity and improve the quality of life for millions of people. “It reflects the Government of India’s continued commitment to building world-class infrastructure in Odisha. On behalf of the people of Odisha, I express my heartfelt gratitude to Hon’ble Prime Minister Shri Narendra Modi Ji and Hon’ble Union Minister Shri @nitin_gadkari Ji for their unwavering support and commitment towards the development and prosperity of our State,” he wrote.
The instant projects are proposed to have a 4-lane configuration from Rameshwar to Konark (Package-1) and 2-lane with paved shoulder from Konark to Paradeep (Package-2), ensuring design speed of 100 km/hour an improved travel efficiency across the Districts of Khurda, Puri, Kendrapada and Jagatsinghpur in the State.
The project will also enhance regional mobility and promote socio-economic development, officials said.
The projects are in line with the PM GatiShakti principles and will connect 9 Economic Nodes and 5 Logistic Nodes. This will have a positive impact on the Logistic Performance Index (LPI) of the country, they said.
Upon completion, travel time is expected to reduce by about 2 hour and 30 minutes between Rameshawar and Paradeep, while providing safe, fast, and uninterrupted connectivity for both passenger and freight traffic.
Additionally, the project will result in substantial reductions in fuel consumption, carbon emissions, and vehicle operating costs (VOC).

