The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given the green light for the construction of a long-awaited coastal highway connecting Rameshwar in Khurda district to Paradip in Jagatsinghpur district of Odisha. The project, which will be executed under the Hybrid Annuity Model (HAM), is divided into two packages and spans a total of 160 kilometers at an estimated cost of Rs 8,300.79 crore.
Reduced Travel Time and Economic Boost
Upon completion, the travel time between Rameshwar and Paradip, currently about five and a half hours, is expected to be reduced by approximately two hours and 30 minutes. Under the HAM, the central government will provide 40 percent of the project cost as construction support, while the remaining 60 percent will be paid to the developer as annuity after the project is completed.
Project Details and Connectivity
First conceived in 2015, the project includes a four-lane, 79.4-kilometer stretch from Rameshwar to Konark (Package 1) and a two-lane road with paved shoulders over 80.78 kilometers from Konark to Paradip (Package 2). Designed for a speed of 100 kilometers per hour, the corridor will improve connectivity across the districts of Khurda, Puri, Kendrapada, and Jagatsinghpur, boosting regional mobility and economic activity, according to government authorities.
Political and Economic Reactions
Welcoming the decision, Chief Minister Mohan Charan Majhi stated that the project would mark a new phase in Odisha's infrastructure push. He posted on social media, "This landmark highway across key coastal districts will cut travel time significantly and open up opportunities in tourism, trade, logistics, and economic growth. It will accelerate the transformation of the coastal economy and improve quality of life."
Aligned with the principles of PM GatiShakti, the highway will link nine economic nodes and five logistics nodes, which are expected to improve the country's Logistics Performance Index. Union Education Minister Dharmendra Pradhan said the project would be a game-changer under the 'Purvodaya Mission'. He added that the blue economy, coastal tourism, and industrialization would gain momentum, creating large-scale employment opportunities for local youth.
Additional Benefits and Current Challenges
The highway will also facilitate safer and faster movement of passenger and freight traffic, while lowering fuel consumption, carbon emissions, and vehicle operating costs. Currently, the six-lane NH-16, part of the Golden Quadrilateral project, passes through Khurda, Bhubaneswar, and Cuttack. National Highway-316 connects Bhubaneswar to Puri and extends to Satapada and Konark. However, poor road geometry, ribbon development, and heavy local traffic along the Puri-Satapada and Puri-Konark stretches hinder smooth long-distance travel.
