Date: 2026-06-03Category: Press ReleaseState: Union GovernmentCountry: India
Cabinet approves the construction of new coastal Highway from Rameshwar to Paradeep (Part of Coastal Highway having total length of 163.180 Km in 2 Packages) on Hybrid Annuity Mode in Odisha
**Executive Summary**
The Cabinet Committee on Economic Affairs has approved the construction of a 160.18 km coastal highway in Odisha from Rameshwar to Paradeep under the Hybrid Annuity Model (HAM). With a total capital cost of Rs. 8,300.79 crore, the project is divided into two packages and scheduled for a 2.5-year construction phase followed by 15 years of operations and maintenance. The project aims to improve regional mobility, reduce travel time by 2.5 hours, and support the PM GatiShakti initiative by connecting key economic and logistic nodes.
**Key Points / Main Content**
**Project Scope and Infrastructure**
* **Total Length:** 160.18 km divided into two distinct packages.
* **Package 1:** 79.40 km from Rameshwar to Konark, designed as a 4-lane access-controlled highway.
* **Package 2:** 80.78 km from Konark to Paradeep, designed as a 2-lane highway with paved shoulders.
* **Construction Type:** Predominantly greenfield development (approximately 157.62 km total).
* **Design Speed:** Engineered for speeds of 100 km/hour.
**Financial and Administrative Details**
* **Total Capital Cost:** Rs. 8,300.79 crore (Package 1: Rs. 5,304.80 Cr; Package 2: Rs. 2,995.99 Cr).
* **Execution Model:** Hybrid Annuity Model (HAM).
* **Concession Period:** 17.5 years, encompassing 2.5 years for construction and 15 years for maintenance.
* **Approval Date:** June 03, 2026.
**Connectivity and Economic Integration**
* **Economic Nodes:** Connects 9 nodes including SEZs in Bhubaneshwar and Khordha, Mega Food Parks, and Fishing/Pharma clusters in Cuttack, Paradeep, and Jagatsinghpur.
* **Logistic Nodes:** Links 5 nodes including Puri Railway Station, Puri Airport, Astarang Port, Paradeep Port, and the Multi-Modal Logistics Park (MMLP) in Jagatsinghpur.
* **Strategic Alignment:** Aligned with PM GatiShakti principles to improve the national Logistic Performance Index (LPI).
**Expected Benefits**
* **Efficiency:** Estimated travel time reduction of 2 hours and 30 minutes between Rameshwar and Paradeep.
* **Environmental Impact:** Expected reduction in fuel consumption, carbon emissions, and vehicle operating costs.
* **Employment:** Projected generation of 53.61 lakh direct and 67.01 lakh indirect man-days of employment.
**Impact Analysis**
**Commuters and Commercial Transporters**
**Impact**
They will experience significantly faster, safer, and uninterrupted travel, with a projected reduction in travel time of 2.5 hours and lower vehicle operating costs.
**Action Required**
Users will need to transition from the existing, congested NH-16 and NH-316 routes to the new corridor to benefit from the 100 km/hour design speed.
**Regional Industry and Economic Nodes (SEZs, Ports, and Clusters)**
**Impact**
Improved logistics efficiency and connectivity to ports and food parks will lower the cost of moving freight and enhance regional socio-economic development.
**Action Required**
Industrial stakeholders should integrate their supply chains with the new logistic nodes and the high-speed corridor to maximize the benefits of the improved Logistic Performance Index.
**Local Workforce in Odisha**
**Impact**
Substantial job creation during both the 2.5-year construction phase and the 15-year maintenance period.
**Action Required**
Interested workers and contractors should prepare for upcoming opportunities related to the 120.62 lakh combined man-days of direct and indirect employment.
Key Entities Referenced
Cabinet Committee on Economic Affairs (CCEA): The primary approving body, chaired by the Prime Minister, responsible for authorizing the 8300.79 crore highway project.
PM GatiShakti: The national policy framework for multi-modal connectivity whose principles govern the project's impact on logistic and economic nodes.
Hybrid Annuity Model (HAM): The specific financial and contractual mode under which the construction and operation of the highway packages are approved.
Odisha (Khurda, Puri, Kendrapada, and Jagatsinghpur): The central location and districts in which the 160.18 km coastal highway from Rameshwar to Paradeep will be constructed.
Ministry of Road Transport & Highways
Cabinet approves the construction of new
coastal Highway from Rameshwar to Paradeep
(Part of Coastal Highway having total length of
163.180 Km in 2 Packages) on Hybrid Annuity
Mode in Odisha
प्रव तथ: 03 JUN 2026 3:32PM by National
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 CorridorAppendix - I: Project Details
Description Rameshwar- Konark 4-Lane Konark-Paradeep
access-controlled Highway
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 751.62 668.13
Cost (Rs Cr.)
Total Capital Cost (Rs Cr.) 5304.80 2995.99Mode Hybrid Annuity Model (HAM) Hybrid Annuity Model
(HAM)
Total Concession Period 17.5 years (2.5 years 17.5 years (2.5 years
construction + 15 years O&M) 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 Pkg I : 10,437PCU (9,236 PCU Tollable)
Traffic (AADT) during FY 2027-28
Pkg II : 7,249PCU (6,369 PCU Tollable)
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