Odisha Gets New Coastal Highway: CCEA Approves Rameswar–Paradip Corridor Worth ₹8,300 Crore

In a major boost to Odisha’s infrastructure and connectivity network, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the construction of a new Rameswar–Paradip Coastal Highway. The ambitious project, with an estimated investment of ₹8,300.79 crore, is expected to transform transportation, improve freight movement and accelerate economic development across Odisha’s coastal belt.

The project will be developed under the Hybrid Annuity Model (HAM) and cover a total length of 160.18 kilometres. The proposed corridor will pass through the districts of Khordha, Puri, Kendrapada and Jagatsinghpur, providing seamless connectivity between important economic and tourism hubs.

Key Highlights

  • Total Length: 160.18 km
  • Project Cost: ₹8,300.79 crore
  • Implementation Model: Hybrid Annuity Model (HAM)
  • Design Speed: 100 kmph
  • Route: Rameswar – Konark – Paradip
  • Districts Covered: Khordha, Puri, Kendrapada and Jagatsinghpur

Project Structure

The highway will be developed in two packages:

Package 1

  • Length: 79.40 km
  • Includes a 76.84-km greenfield stretch
  • Estimated Cost: ₹5,304.8 crore

Package 2

  • Length: 80.78 km
  • Estimated Cost: ₹2,995.99 crore

Both packages will have a 17.5-year concession period, covering construction as well as operational responsibilities.

Improved Connectivity

Officials stated that the new corridor will ease pressure on the existing Puri-Satapada and Puri-Konark roads, which currently face congestion due to heavy local traffic, roadside development and road geometry limitations.

The highway will also strengthen connectivity with major National Highways linking Bhubaneswar, Puri and Cuttack, making travel smoother and more efficient.

Highway Design

  • Rameswar–Konark Section: Four-lane highway
  • Konark–Paradip Section: Two-lane road with paved shoulders

The project has been aligned with the PM GatiShakti National Master Plan and will connect nine Economic Nodes and five Logistic Nodes, enhancing industrial growth and trade logistics.

Economic and Employment Benefits

The new coastal highway is expected to significantly reduce travel time between Rameswar and Paradip by nearly 2 hours and 30 minutes. Authorities also anticipate lower fuel consumption, reduced vehicle operating costs and a decrease in carbon emissions.

The project is projected to generate:

  • 5.361 million direct man-days of employment
  • 6.701 million indirect man-days of employment

Traffic Projections

By 2027-28, the estimated average daily traffic is expected to reach:

  • 10,437 PCU on Package 1
  • 7,249 PCU on Package 2

With improved road infrastructure, faster movement of goods and better access to coastal regions, the Rameswar–Paradip Coastal Highway is expected to become one of Odisha’s most significant transport corridors, supporting tourism, trade, logistics and long-term economic growth.

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