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Big Infrastructure Push: Modi Cabinet Clears ₹8,300 Crore Coastal Highway Project in Odisha

The Union Cabinet has approved the ₹8,300.79 crore Rameshwar–Paradeep Coastal Highway project in Odisha. The 163.18 km corridor is expected to improve coastal connectivity, support tourism, strengthen logistics, and boost economic growth across the state's coastal districts.
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Odisha: Rameshwar–Paradeep Coastal Highway has received approval from the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi. 

The project will be developed in Odisha under the Hybrid Annuity Model (HAM) at an estimated cost of ₹8,300.79 crore. 

The new highway will cover 163.18 km in two packages and is expected to improve coastal connectivity, reduce travel time, support tourism, strengthen logistics, and boost economic growth across Odisha’s coastal districts.

Key Highlights of Rameshwar–Paradeep Coastal Highway Project

  • Project Cost: ₹8,300.79 crore
  • Total Length: 163.18 km
  • State: Odisha
  • Development Model: Hybrid Annuity Model (HAM)
  • Approved By: Cabinet Committee on Economic Affairs (CCEA)
  • Districts Covered:
    • Khurda
    • Puri
    • Kendrapada
    • Jagatsinghpur
  • Route: Rameshwar to Paradeep

Read also: Cabinet Approves ₹24,634 Crore Multi-Tracking Railway Projects to Enhance Connectivity in Four States

Rameshwar–Paradeep Coastal Highway Project Structure

The coastal highway will be developed in two packages:

Package 1

  • Rameshwar to Konark
  • Length: About 79.4 km
  • Four-lane access-controlled highway

Package 2

  • Konark to Paradeep
  • Length: About 80.78 km
  • Two-lane highway with paved shoulders

The highway is being designed for speeds of up to 100 kmph, allowing faster and safer movement of passenger and freight vehicles.

Why Rameshwar–Paradeep Coastal Highway Project Is Important

The existing road network along Odisha’s coast faces several challenges:

  • Heavy local traffic
  • Congestion near tourist areas
  • Ribbon development along highways
  • Slow freight movement
  • Travel delays during peak seasons

The new coastal highway aims to provide a dedicated corridor that will improve long-distance travel efficiency and reduce pressure on existing roads.

Economic Impact of the Project 

1. Boost to Tourism

The corridor will improve access to:

  • Puri
  • Konark
  • Satapada
  • Chilika region
  • Coastal tourism destinations

Faster travel could encourage higher tourist arrivals and support local businesses such as hotels, restaurants, and transport operators.

2. Better Port Connectivity

The project will strengthen connectivity to:

  • Paradeep Port
  • Industrial zones
  • Logistics hubs

This can reduce transportation costs and improve supply chain efficiency for industries operating in Odisha.

3. Support for Coastal Economy

The highway is expected to benefit:

  • Fishing communities
  • Small businesses
  • Agricultural producers
  • Industrial clusters
  • Special Economic Zones (SEZs)

Improved transportation infrastructure generally attracts new investments and creates employment opportunities.

Strategic Benefits

Disaster Management

Odisha frequently faces cyclones and coastal weather events.

The new highway can help:

  • Faster evacuation during emergencies
  • Quicker movement of relief materials
  • Improved disaster response operations

This makes the project strategically important beyond transportation benefits.

Part of Larger Coastal Connectivity Vision

The Rameshwar–Paradeep section is part of a broader coastal highway vision for eastern India. Earlier plans under the Bharatmala programme envisioned a larger coastal road network along Odisha’s coastline to improve regional connectivity and economic integration.

Read also: ₹28,840 Crore Modified UDAN Scheme Approved: Key Changes, Benefits, and Impact on Regional Connectivity


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