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Newdelhi:3/6/26:The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, today has 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 Rs.8300.79 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% 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.
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 and improved travel efficiency across the Districts of Khurda, Puri, Kendrapada and Jagatsinghpur in the State of Odisha. The project will also enhance regional mobility and promote socio-economic development.
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.
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).
Map of Corridor
Appendix – I: Project Details
| Description | Rameshwar- Konark 4-Lane access-controlled Highway | Konark-Paradeep
2-lane with Paved Shoulder |
| Length (km) | 79.40 | 80.78 |
| Brownfield length (Km) | 2.560 | – |
| Greenfield Length (Km) | 76.840 | 80.78 |
| Total Civil Cost (Rs Cr.) | 3129.06 | 1566.02 |
| Land and other Pre-construction Cost (Rs Cr.) | 751.62 | 668.13 |
| Total Capital Cost (Rs Cr.) | 5304.80 | 2995.99 |
| Mode | Hybrid Annuity Model (HAM) | Hybrid Annuity Model (HAM) |
| Total Concession Period | 17.5 years (2.5 years construction + 15 years O&M) | 17.5 years (2.5 years construction + 15 years O&M) |
| Economic | 2 SEZ- Bhubaneshwar, Khordha (Khandagiri); Mega Food Parks- Bhubaneshwar; Fishing Cluster-Paradeep, Konark, Jagatsinghpur, Puri, Kendrapada; Pharma Cluster- Cuttack. | |
| Logistic Nodes | Puri Railway Station, Puri Airport, Astarang Port, Paradeep Port & MMLP -Jagatsinghpur. | |
| Employment Generation Potential | 53.61 Lakhs Man-Days (direct) & 67.01 lakh Man-Days (indirect) | |
| Expected Annual Average Daily Traffic (AADT) during FY 2027-28 | Pkg I : 10,437PCU (9,236 PCU Tollable)
Pkg II : 7,249PCU (6,369 PCU Tollable) |
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