India Approves Rs 8,300 Crore Coastal Highway Project to Transform Odisha’s Connectivity and Economic Growth

In a major infrastructure push aimed at strengthening coastal connectivity and accelerating regional development, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the construction of a 160-kilometre coastal highway in Odisha. The ambitious project, stretching from Rameshwar to Paradeep, will be developed at an estimated cost of Rs 8,300 crore under the Hybrid Annuity Model.

The highway has been designed as a strategic transport corridor that will significantly improve connectivity across Odisha’s coastline. According to the approved plan, the route will be divided into two sections. The stretch from Rameshwar to Konark will be developed as a four-lane highway, while the section extending from Konark to Paradeep will be constructed as a two-lane road.

The project is expected to serve as a critical economic lifeline by connecting nine major economic nodes, including Special Economic Zones, food processing parks, and fishing clusters. It will also link five key logistics hubs, including ports and airports, strengthening the movement of goods and supporting trade and industrial activities across the region.

Officials said the new corridor will help reduce traffic congestion on the heavily used National Highways NH-16 and NH-316. Improved traffic flow is expected to lower travel times, reduce fuel consumption, and decrease vehicular emissions, contributing to greater transport efficiency and environmental benefits.

Beyond transportation advantages, the project is expected to generate substantial employment opportunities. Government estimates indicate that the construction and associated activities will create more than 120 lakh man-days of employment, providing a significant boost to economic activity and livelihoods.

Odisha Chief Minister Mohan Charan Majhi welcomed the approval, describing it as the beginning of a new chapter for the state’s connectivity, tourism sector, and overall economic growth. The project is expected to enhance access to key coastal destinations while supporting long-term development across multiple industries.

The approval of the coastal highway marks a significant milestone in India’s infrastructure expansion strategy. By improving connectivity between economic centers, logistics hubs, ports, airports, tourism destinations, and coastal communities, the project is poised to reshape Odisha’s development landscape and strengthen its role in the nation’s economic growth trajectory.