New Delhi, Dec 31 (NationPress) The Union Cabinet, presided over by Prime Minister Narendra Modi, has greenlit the expansion and reinforcement of the current 2-lane road to a 2-lane with paved shoulders along NH-326 in Odisha, spanning from km 68.600 to km 311.700. This project, structured under the EPC (engineering, procurement, and construction) model, comes with a financial outlay of Rs 1,526.21 crore.

The initiative is set in southern Odisha, covering the districts of Gajapati, Rayagada, and Koraput, and aims to significantly boost both intra-state and inter-state connectivity. The improvements will facilitate faster and safer vehicle movement, thereby invigorating sectors such as industry and tourism and enhancing access to crucial services in aspirational and tribal regions.

The overall investment for this endeavor totals Rs 1,526.21 crore, which encompasses a civil construction expenditure of Rs 966.79 crore, as per the Cabinet Committee on Economic Affairs (CCEA).

According to the Cabinet, the enhancement of NH-326 will expedite, secure, and stabilize travel, contributing to the comprehensive development of southern Odisha, particularly benefiting Gajapati, Rayagada, and Koraput districts.

Enhanced road connectivity is expected to have a direct positive impact on local communities, industries, educational establishments, and tourism venues by improving access to markets, healthcare, and job opportunities, thus promoting inclusive growth within the region.

The current section of the Mohana–Koraput segment of NH-326 suffers from sub-par geometry, featuring numerous deficient curves and steep gradients. The existing road alignment and lane width, along with geometric inefficiencies, hinder the safe and efficient movement of heavy vehicles and limit freight flow to coastal ports and industrial hubs.

The Cabinet has indicated that these limitations will be addressed by upgrading the corridor to a 2-lane road with paved shoulders. This will involve geometric corrections, eliminating hazardous spots, and strengthening the pavement, which will facilitate the safe and seamless transport of goods and passengers while lowering vehicle operating expenses.

The upgrade will enhance connectivity from Mohana–Koraput to major economic and logistics routes, linking it with NH-26, NH-59, NH-16, and the Raipur–Visakhapatnam corridor, while also improving last-mile access to Gopalpur port, Jeypore airport, and various railway stations.

This corridor is crucial as it connects vital industrial and logistic nodes, including JK Paper, Mega Food Park, NALCO, IMFA, Utkal Alumina, Vedanta, and HAL, as well as significant education and tourism hubs like Central University of Odisha, Koraput Medical College, Taptapani, and Rayagada. This will facilitate quicker freight movement, reduce travel times, and foster regional economic growth.

The construction is expected to be completed within 24 months from the designated start date for each phase, followed by a five-year defect liability and maintenance period, culminating in a total contract duration of seven years (comprising two years for construction and five years for defect liability).