Odisha Chief Minister Mohan Charan Majhi on Wednesday welcomed the Cabinet Committee on Economic Affairs' approval of the ₹8,300 crore Coastal Highway connecting Rameshwar to Paradeep, calling it 'a new chapter in Odisha's infrastructure development'. The Chief Minister announced the green light in a post on X, thanking Prime Minister Narendra Modi and Union Minister for Road Transport and Highways Nitin Gadkari for backing the project.

Context

In his statement, the Chief Minister said the project will 'strengthen connectivity, reduce travel time by nearly two and a half hours, and create new opportunities for tourism, trade, logistics and economic growth'. He framed the approval as part of the central government's 'continued commitment to building world-class infrastructure in Odisha'.

The corridor will run along Odisha's eastern seaboard, linking coastal districts to the major port town of Paradeep in Jagatsinghpur district. Mr Majhi said the highway would 'accelerate the transformation of Odisha's coastal economy, enhance regional connectivity and improve the quality of life for millions of people'.

Policy backdrop

The Rameshwar-Paradeep stretch fits within a broader central push for port-led and coastal connectivity. The Bharatmala Pariyojana, launched in 2015, identified coastal and port-connectivity corridors as priority segments of the national highway network, while the Sagarmala programme, also rolled out in 2015, has pushed port-led development along India's coasts.

The National Infrastructure Pipeline, unveiled in 2019, allocated significant outlays for road projects in eastern states, including Odisha. Successive approvals under these umbrellas have steadily expanded the national highway footprint along the state's long coastline since 2014.

Stakeholders and impact

Paradeep is one of India's busiest east-coast ports, handling bulk cargo for steel, fertiliser and petroleum sectors. A high-capacity coastal corridor feeding the port is expected to lower logistics costs for industries clustered in Jagatsinghpur, Kendrapara and adjoining districts, and to ease the movement of seafood, agricultural produce and minerals from the hinterland.

The Chief Minister specifically flagged tourism, trade and logistics as beneficiaries. Odisha's coastline hosts heritage and pilgrimage sites along with beaches at Puri, Konark and Chandipur, and faster road links are likely to feed circuit tourism. Coastal fishing communities and small traders along the alignment are also expected to gain from improved market access.

'On behalf of the people of Odisha, I express my heartfelt gratitude to Hon'ble Prime Minister Shri Narendra Modi Ji and Hon'ble Union Minister Shri Nitin Gadkari Ji for their unwavering support and commitment towards the development and prosperity of our State,' Mr Majhi wrote.

What's next

With in-principle approval cleared, attention will shift to detailed project tendering, land acquisition along the coastal alignment, and securing environmental and coastal regulation zone clearances — typically the most time-sensitive steps for projects of this scale. Coordination with the Paradeep Port Authority on last-mile linkages and with the state revenue administration on right-of-way will be central to keeping the schedule on track.

For the BJP-led state government, which took office in June 2024, the Coastal Highway adds to a growing pipeline of centrally-funded projects it has showcased as evidence of a closer Centre-state working relationship. How quickly the corridor moves from approval to construction will shape its political and economic dividend in the run-up to the next round of state-level reviews.