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
**Policy Summary: Construction of the Bhubaneswar Bypass Ring Road in Odisha**
On August 19, 2025, the Cabinet Committee on Economic Affairs, chaired by the Prime Minister, approved the construction of a 110.875 km, 6-lane access-controlled Capital Region Ring Road Bhubaneswar Bypass in Odisha. The project will be implemented on 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 between Rameshwar and Tangi, which currently passes through the urbanized cities of Khordha, Bhubaneswar, and Cuttack.
The greenfield highway will divert heavy commercial traffic away from these cities, improving freight movement efficiency, reducing logistics costs, and promoting socioeconomic growth in Odisha and other eastern states. The project integrates with three major National Highways (NH55, NH57, and NH655) and one State Highway (SH65), providing seamless connectivity to key economic, social, and logistics hubs.
The upgraded corridor will enhance multimodal integration by connecting with 10 Economic Nodes, 4 Social Nodes, and 5 Logistic Nodes, facilitating improved multimodality through connections to 1 major Railway Station, 1 Airport, 1 proposed MultiModal Logistics Park (MMLP), and 2 major Ports. The project is expected to generate approximately 74.43 lakh person-days of direct employment and 93.04 lakh person-days of indirect employment, fostering growth and development in the surrounding regions. The Ministry of Road Transport and Highways is overseeing the project.
Key Entities Referenced
Ministry of Road Transport Highways: The Indian governmental ministry responsible for the development and maintenance of the national highways network.
Capital Region Ring Road Bhubaneswar Bypass: A proposed 6-lane access-controlled ring road bypass around Bhubaneswar, Odisha, India.
Odisha: An eastern Indian state where the Capital Region Ring Road Bhubaneswar Bypass is planned.
Hybrid Annuity Mode HAM: A model of infrastructure development used for the Capital Region Ring Road Bhubaneswar Bypass project.
Cabinet Committee on Economic Affairs: An Indian governmental committee, chaired by the Prime Minister, that approved the construction project.
Shri Narendra Modi: The Prime Minister of India and chair of the Cabinet Committee on Economic Affairs.
National Highway NH55: One of the national highways that the project alignment integrates with.
MultiModal Logistics Park MMLP: A proposed logistics park that the upgraded corridor will connect with to enhance multimodality.
Ministry of Road Transport & Highways
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 3:21PM 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