Odisha coastal highway: CCEA clears ₹8,300 crore Rameshwar-Paradeep project
Synopsis
Odisha is getting a 160-km coastal spine. The CCEA's ₹8,300 crore nod for the Rameshwar-Paradeep highway plugs a long-standing gap in NH-316's Puri-Konark stretch, links nine economic and five logistics nodes to Paradeep Port, and is pitched to cut travel time by 2.5 hours — a quiet but consequential bet on India's eastern coast logistics.
Key Takeaways
The CCEA approved the ₹8,300.79 crore Rameshwar-Paradeep Coastal Highway on 3 June 2025 .
The corridor spans 160.18 km across Khurda, Puri, Kendrapada, and Jagatsinghpur districts.
It will be built on the Hybrid Annuity Model in two packages — four-lane Rameshwar-Konark and two-lane Konark-Paradeep.
Travel time between Rameshwar and Paradeep is expected to fall by about 2.5 hours .
The project links 9 economic nodes and 5 logistics nodes under PM GatiShakti .
CM Mohan Charan Majhi thanked PM Modi and Union Minister Nitin Gadkari for the clearance.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on 3 June 2025 approved the construction of a new ₹8,300.79 crore Coastal Highway from Rameshwar to Paradeep in Odisha, spanning 160.18 km across four coastal districts. Odisha Chief Minister Mohan Charan Majhi welcomed the clearance, calling it the start of a new chapter in the state's infrastructure push.
What the CCEA cleared
The project will be executed on the Hybrid Annuity Model (HAM) in two packages. Package-1 from Rameshwar to Konark will be a four-lane corridor, while Package-2 from Konark to Paradeep will be a two-lane stretch with paved shoulders, both designed for a speed of 100 km/hour.
The alignment passes through Khurda, Puri, Kendrapada, and Jagatsinghpur districts, connecting nine economic nodes and five logistics nodes under the PM GatiShakti framework.
What CM Majhi said
In a post on X, Majhi said the landmark project will strengthen connectivity, cut travel time by nearly 2.5 hours, and unlock fresh opportunities in tourism, trade, and logistics. He added that the highway 'will accelerate the transformation of Odisha's coastal economy' and improve the quality of life for millions.
The Chief Minister thanked PM Modi and Union Road Transport Minister Nitin Gadkari on behalf of the people of Odisha, framing the approval as a reaffirmation of the Centre's commitment to the state's development.
Why a new corridor was needed
The existing NH-16, part of the Golden Quadrilateral, is a six-lane road through Khordha, Bhubaneswar, and Cuttack, while NH-316 links Bhubaneswar with Puri, Satapada, and Konark. However, the Puri-Satapada and Puri-Konark stretches suffer from poor road geometry, with nearly 40 per cent ribbon development along the corridor and heavy local commuter traffic — making long-distance movement inefficient, according to the official statement.
Economic impact
The Centre expects the project to lift India's Logistics Performance Index (LPI) ranking once operational. For Odisha, the highway connects the industrial hinterland to Paradeep Port — one of India's largest major ports by cargo volume — potentially shortening turnaround for bulk and container traffic.
What's next
Tendering and land acquisition timelines for the HAM packages are expected to follow in the coming months. On completion, travel time between Rameshwar and Paradeep is projected to drop by about 2.5 hours, reshaping commerce along Odisha's coastline.
Point of View
It is mid-tier road clearances like this that quietly reshape state economies. Paradeep Port has long been bottlenecked by feeder-road quality, and a four-lane spine to Konark plus a paved Konark-Paradeep link directly addresses that. The real test, as with most HAM projects, will be land acquisition and concessionaire bandwidth — Odisha's recent record on both is mixed, and timelines on coastal corridors elsewhere have slipped by years.
NationPress
8 Aug 2026
Frequently Asked Questions
What is the Rameshwar to Paradeep Coastal Highway project?
It is a new 160.18 km highway approved by the CCEA on 3 June 2025 at a cost of ₹8,300.79 crore, to be built on the Hybrid Annuity Model. The corridor will run through Khurda, Puri, Kendrapada, and Jagatsinghpur districts of Odisha.
How much travel time will the new highway save?
Travel time between Rameshwar and Paradeep is expected to reduce by about 2.5 hours once the highway is operational. The corridor is designed for a speed of 100 km/hour.
Which districts will the Coastal Highway pass through?
The highway will pass through four coastal districts of Odisha — Khurda, Puri, Kendrapada, and Jagatsinghpur. It will also connect nine economic nodes and five logistics nodes under the PM GatiShakti framework.
Why was a new highway needed when NH-16 and NH-316 already exist?
While NH-16 is a six-lane Golden Quadrilateral corridor, the existing NH-316 stretches between Puri-Satapada and Puri-Konark have poor road geometry and nearly 40 per cent ribbon development. Heavy local commuter traffic makes them unsuitable for efficient long-distance movement, according to the official statement.
What did Odisha CM Mohan Charan Majhi say about the project?
CM Majhi welcomed the approval in a post on X, calling it the start of a new chapter in Odisha's infrastructure development. He said the project will boost the coastal economy, improve connectivity, and create opportunities in tourism, trade, and logistics, and thanked PM Modi and Union Minister Nitin Gadkari.
