Date: 2025-08-19Category: Not ApplicableState: Union GovernmentCountry: India
Cabinet approves construction of 6-Lane Access-Controlled Capital Region Ring Road (Bhubaneswar Bypass, 110.875 km) in Odisha on Hybrid Annuity Mode (HAM) at capital cost of Rs.8307.74 crore
**Executive Summary:**
The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, has approved the construction of a 110.875 km, 6-lane access-controlled Capital Region Ring Road Bhubaneswar Bypass in Odisha. The project, connecting Rameshwar to Tangi, will be executed under the Hybrid Annuity Mode (HAM) with a total capital cost of Rs. 8307.74 crore.
The bypass aims to alleviate significant congestion on the existing National Highway due to high traffic volumes passing through Khordha, Bhubaneswar, and Cuttack. As a greenfield highway, it will divert heavy commercial traffic away from these urban centers, improving freight movement efficiency, reducing logistics costs, and stimulating socio-economic growth in Odisha and other eastern states.
The project integrates with National Highways NH55, NH57, and NH655, as well as State Highway SH65, ensuring seamless connectivity to key economic, social, and logistics hubs across Odisha. It will also enhance multimodal integration by connecting with 10 economic nodes (including SEZs, Mega Food Parks, Textile and Pharma Clusters, and Fishing Clusters), 4 social nodes (including Aspirational, Tribal, and LWE Affected Districts), and 5 logistic nodes. This includes connection to a major railway station (Khordha), an airport (Bhubaneswar), a proposed MultiModal Logistics Park (MMLP), and two major ports (Puri and Astrang).
The project is expected to generate 74.43 lakhs persondays of direct and 93.04 lakhs persondays of indirect employment. The Annual Average Daily Traffic (AADT) is estimated at 28,282 Passenger Car Units (PCU) in FY25. The total civil cost is estimated at Rs. 4686.74 Cr and the land acquisition cost is estimated at Rs. 1029.43 Cr.
Upon completion, the bypass is expected to strengthen connectivity between major religious and economic centers, foster trade and industrial development, and contribute significantly to regional economic growth.
Key Entities Referenced
Cabinet Committee on Economic Affairs: The Indian government committee that approved the construction of the Bhubaneswar Bypass project.
Shri Narendra Modi: The Prime Minister of India, who chaired the Cabinet Committee on Economic Affairs.
Capital Region Ring Road Bhubaneswar Bypass: The 6-lane access-controlled Greenfield highway project in Odisha, connecting Rameshwar to Tangi.
Odisha: The Indian state where the Bhubaneswar Bypass project is located.
Hybrid Annuity Mode: The financial model (HAM) used for the Bhubaneswar Bypass project.
Khordha: A city in Odisha, India, that will be bypassed by the new road.
Cuttack: A city in Odisha, India, that will be bypassed by the new road.
National Highway NH55: A national highway in India that connects with the Bhubaneswar Bypass project alignment.
Cabinet Committee on Economic Affairs (CCEA)
Cabinet approves construction of 6-Lane Access-
Controlled Capital Region Ring Road (Bhubaneswar
Bypass, 110.875 km) in Odisha on Hybrid Annuity
Mode (HAM) at capital cost of Rs.8307.74 crore
Posted On: 19 AUG 2025 3:17PM by PIB Delhi
The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi today has
approved construction of 6-Lane Access-Controlled Capital Region Ring Road (Bhubaneswar Bypass -
110.875 km) in Odisha on Hybrid Annuity Mode (HAM) at a total capital cost of Rs.8307.74 crore.
Currently, connectivity between Rameshwar to Tangi on existing National Highway experience
significant congestion due to high traffic volumes, passing through highly urbanized cities Khordha,
Bhubaneswar and Cuttack. To address these challenges, the project is proposed to be developed
as 6-Lane Access-Controlled Greenfield Highway. The project will provide significant benefit to
Odisha and other eastern States by diverting heavy commercial traffic away from Cuttack,
Bhubaneswar and Khordha Cities. This will enhance the efficiency of freight movement, reducing
logistics cost and driving socio-economic growth in the region.
The project alignment integrates with 3 major National Highways (NH-55, NH-57 and NH-655) and
1 State Highway (SH-65), providing seamless connectivity to key economic, social, and logistics
nodes across Odisha. Additionally, the upgraded corridor will enhance multi-modal integration by
connecting with 10 Economic Nodes, 04 Social Nodes and 05 Logistic Nodes, providing enhanced
multimodality with 1 Major Railway Station, 1 Airport, 1 proposed Multi-Modal Logistics Park
(MMLP), and 2 major Ports thereby facilitating faster movement of goods and passengers across
the region.
Upon completion, the bypass will play a pivotal role in regional economic growth, strengthening
connectivity between major religious and economic centers and opening new avenues for trade and
industrial development. The project will also generate approximately 74.43 Lakhs person-days of
direct and 93.04 lakh person-days of indirect employment, and will open new avenues of growth,
development and prosperity in surrounding regions.
Map of CorridorAppendix - I: Project Details
Feature Details
6-Lane Access-Controlled Greenfield Capital Region
Project Name Ring Road (Bhubaneswar Bypass) from Rameshwar to
Tangi
Corridor Kolkata – Chennai
Length (km) 110.875
Total Civil Cost (Rs Cr.) 4686.74
Land Acquisition Cost (Rs Cr.) 1029.43
Total Capital Cost (Rs Cr.) 8307.74
Mode Hybrid Annuity Mode (HAM)
Bypasses Instant Project of Length 110.875 km
National Highways – NH-55, NH-655 & NH-57.
Major Roads Connected
State Highways – SH-65
Airports: Bhubaneswar
Railway Stations: Khordha
Port: Puri & Astrang
Economic / Social / Transport
Economic Nodes: SEZ, Mega Food Park, Textile &
Nodes Connected
Pharma Cluster, Fishing Cluster
Social Nodes: Aspirational District, Tribal District and
LWE Affected District.
Major Cities / Towns Connected Khordha, Bhubaneswar, Cuttack and Dhenkanal.
74.43 Lakhs Man-Days (direct) & 93.04 lakh Man-Days
Employment Generation Potential
(indirect)
Annual Average Daily Traffic
Estimated at 28,282 Passenger Car Units (PCU)
(AADT) in FY-25***
MJPS
(Release ID: 2157887)