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 (CCEA) 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 aims to reduce travel time by 2 hours and 30 minutes. The project follows a 17.5-year concession period, including a 2.5-year construction timeline.
**Key Points / Main Content**
* **Project Specifications and Route**
* The highway spans 160.18 km across the Khurda, Puri, Kendrapada, and Jagatsinghpur districts of Odisha.
* **Package-1:** Rameshwar to Konark (79.40 km) featuring a 4-lane access-controlled configuration.
* **Package-2:** Konark to Paradeep (80.78 km) featuring a 2-lane configuration with paved shoulders.
* The project is primarily greenfield (157.62 km) with a small brownfield section (2.56 km).
* Infrastructure is designed for a speed of 100 km/hour to ensure smooth long-distance movement.
* **Economic and Logistic Alignment**
* The project adheres to PM GatiShakti principles, connecting 9 Economic Nodes and 5 Logistic Nodes.
* Key connected nodes include SEZs in Bhubaneswar and Khordha, Mega Food Parks, and various Fishing and Pharma clusters.
* Critical logistic hubs linked include Puri Railway Station, Paradeep Port, Astarang Port, and the MMLP-Jagatsinghpur.
* **Financial and Operational Framework**
* Total capital cost for Package-1 is Rs. 5,304.80 crore and for Package-2 is Rs. 2,995.99 crore.
* Implementation uses the Hybrid Annuity Model (HAM).
* The concession period is set at 17.5 years, consisting of 2.5 years for construction and 15 years for Operations and Maintenance (O&M).
**Impact Analysis**
**Commuters and Long-Distance Travelers**
* **Impact:** Benefit from a 150-minute reduction in travel time, improved road geometry, and safer, uninterrupted connectivity between Rameshwar and Paradeep.
* **Action Required:** Shift transit routes to the new corridor to take advantage of the 100 km/hour design speed and reduced vehicle operating costs.
**Logistics and Freight Industry**
* **Impact:** Enhanced efficiency in cargo movement to major ports and railway stations; reduction in fuel consumption and carbon emissions.
* **Action Required:** Align logistics planning with the new access-controlled routes to improve delivery timelines and lower operational expenses.
**Local Labor and Economy**
* **Impact:** Generation of significant employment, estimated at 53.61 lakh man-days of direct labor and 67.01 lakh man-days of indirect labor.
* **Action Required:** Local workforce and service providers should engage with the construction and maintenance phases of the 17.5-year project cycle.
**Environment and National Infrastructure**
* **Impact:** Positive contribution to the country’s Logistic Performance Index (LPI) and a substantial reduction in the environmental footprint due to lower emissions.
* **Action Required:** Implementing agencies must ensure the 2.5-year construction phase meets design and sustainability standards.
Key Entities Referenced
Cabinet Committee on Economic Affairs (CCEA): The primary government body that approved the construction of the new coastal highway project in Odisha.
PM GatiShakti: The national master plan for multi-modal connectivity whose principles guide the project's alignment and economic objectives.
Hybrid Annuity Model (HAM): The specific public-private partnership mode used for the implementation and financing of the highway construction.
Odisha (Khurda, Puri, Kendrapada, and Jagatsinghpur): The central geographic location and districts where the 160.18 km coastal highway will be constructed.
Logistic Performance Index (LPI): The national metric that the project aims to positively impact by improving connectivity between economic and logistic nodes.
Cabinet Committee on Economic Affairs (CCEA)
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 3:10PM 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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