On Wednesday, the Cabinet Committee on Economic Affairs, chaired by the Prime Minister approved 8,300 crore for the construction of a new coastal highway from Rameshwar to Paradeep on Hybrid Annuity Model (HAM) in Odisha. To be constructed under two packages, it will have a combined length of 160 km.
The project section of the new coastal highway from Rameshwar to Paradeep passes through the Khurda, Puri, Kendrapada, and Jagatsinghpur districts of Odisha. Meanwhile, the existing NH-16 road network forms part of the Golden Quadrilateral and is already a six-lane highway routing through major towns like Khordha, Bhubaneswar, and Cuttack.
Union Minister of Information and Broadcasting, Ashwini Vaishnaw informed that the project will significantly improve connectivity along the state’s coastline while simultaneously establishing key strategic and logistic areas. According to Union Minister Ashwini Vaishnaw, the 160.18 km highway project will be executed in two distinct packages under a 17.5-year concession period, which includes 2.5 years for construction and 15 years for operations. The first phase is a 79.4 km, four-lane access-controlled stretch from Rameshwar to Konark, budgeted at ₹5,304.80 crore. The second phase covers an 80.78 km, two-lane highway with paved shoulders from Konark to Paradip, costing ₹2,995.99 crore. Both sections will support speeds up to 100 km/h.
In alignment with the PM Gati Shakti initiative, the coastal highway is designed to link nine economic nodes, including two Special Economic Zones (SEZs), various mega food parks, a pharma cluster in Cuttack, and a fishing cluster spanning Paradeep, Konark, Jagatsinghpur, Puri, and Kendrapada. Additionally, it will connect five major logistics hubs, such as the Puri Railway Station, the proposed Puri Airport, Astarang Port, and Paradip Port. This corridor is set to drive growth across industrial clusters, tourism, fisheries, and export-oriented sectors throughout the coastal region.