Centre clears ₹8,300 crore Rameshwar-Paradeep coastal highway in Odisha
Synopsis
Odisha's coastal belt is finally getting a high-speed spine. The Centre's ₹8,300 crore Rameshwar-Paradeep highway will cut 2.5 hours off the journey, plug into the Golden Quadrilateral, and link nine Economic Nodes — a clear PM GatiShakti play aimed at lifting India's Logistic Performance Index through port-linked coastal connectivity.
Key Takeaways
CCEA approved the Rameshwar-Paradeep coastal highway on 3 June 2025 at a cost of ₹8,300.79 crore .
The project spans 160.18 km and will be built under the Hybrid Annuity Model (HAM) in two packages.
Package-1 is 4-lane from Rameshwar to Konark; Package-2 is 2-lane with paved shoulder from Konark to Paradeep.
Travel time between the two ends will fall by about 2 hours and 30 minutes , with a design speed of 100 km/hour .
The corridor will connect nine Economic Nodes and five Logistic Nodes under PM GatiShakti .
It will cover the districts of Khurda , Puri , Kendrapada and Jagatsinghpur .
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on 3 June 2025 approved the construction of a new 160.18 km coastal highway between Rameshwar and Paradeep in Odisha on the Hybrid Annuity Model (HAM), at a combined capital cost of ₹8,300.79 crore. The project, split into two packages, is expected to slash travel time on the corridor by nearly two-and-a-half hours and unlock long-pending coastal connectivity in the state.
Key project details
The highway will be executed in two packages. Package-1 covers a 4-lane stretch from Rameshwar to Konark, while Package-2 provides a 2-lane with paved shoulder configuration from Konark to Paradeep. The corridor is designed for a speed of 100 km/hour and will traverse the districts of Khurda, Puri, Kendrapada and Jagatsinghpur.
Why the upgrade was needed
The existing NH-316, connecting Bhubaneswar–Puri and extending towards Satapada and Konark, has long been considered unfit for efficient long-distance traffic. According to the official statement, nearly 40 per cent of the corridor suffers from ribbon development, with heavy roadside local commuter movement making the existing geometry unsuitable for high-speed vehicular flow.
Economic and logistics impact
The project section forms part of the Golden Quadrilateral, which is already a 6-lane highway passing through Khordha, Bhubaneswar and Cuttack. The new alignment is aligned with PM GatiShakti principles and will link nine Economic Nodes and five Logistic Nodes, with officials expecting a measurable lift to India's Logistic Performance Index (LPI).
Environmental and commuter gains
The Centre said the highway will deliver substantial cuts in fuel consumption, carbon emissions and vehicle operating costs (VOC). It is also expected to provide safer, faster and uninterrupted connectivity for both passenger and freight movement along Odisha's coastal belt, supporting tourism circuits around Puri and Konark.
What's next
With CCEA clearance now in place, the next milestones include bid finalisation under the HAM framework and the appointment of concessionaires for each package. The project is expected to deepen industrial and port-led growth around Paradeep while improving regional mobility across coastal Odisha.
Point of View
But HAM projects in eastern India have a mixed record on land acquisition timelines. The real test will be whether Package-2's 2-lane-with-shoulder design ages well against rising freight volumes from Paradeep, or becomes a bottleneck within a decade. Linking it to GatiShakti's Economic Nodes is the right framing; execution discipline will decide the rest.
NationPress
20 Jul 2026
Frequently Asked Questions
What is the Rameshwar-Paradeep coastal highway project?
It is a new 160.18 km coastal highway in Odisha approved by the CCEA on 3 June 2025 at a cost of ₹8,300.79 crore. The project will be built under the Hybrid Annuity Model in two packages and is expected to cut travel time between Rameshwar and Paradeep by about 2.5 hours.
Which districts will the new Odisha highway cover?
The corridor will pass through four coastal districts in Odisha — Khurda, Puri, Kendrapada and Jagatsinghpur. It is designed for a speed of 100 km/hour to ensure smoother long-distance movement.
How is the project structured under HAM?
The project is divided into two packages. Package-1 is a 4-lane stretch from Rameshwar to Konark, while Package-2 is a 2-lane road with paved shoulder from Konark to Paradeep, both under the Hybrid Annuity Model framework.
How does this highway link to PM GatiShakti?
The project follows PM GatiShakti principles by integrating multi-modal connectivity. It will link nine Economic Nodes and five Logistic Nodes, which officials say will improve India's Logistic Performance Index over time.
Why was the existing NH-316 considered inadequate?
The existing NH-316 along Puri–Satapada and Puri–Konark stretches has poor road geometry and nearly 40 per cent ribbon development. High roadside local traffic made it unsuitable for fast, long-distance passenger and freight movement.
