The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the construction of a new coastal highway connecting Rameshwar and Paradeep in Odisha at a total cost of Rs 8,300.79 crore under the Hybrid Annuity Model (HAM).

The project will be developed in two packages covering a total length of about 160 km across the districts of Khurda, Puri, Kendrapada, and Jagatsinghpur. The highway will feature a four-lane stretch from Rameshwar to Konark and a two-lane road with paved shoulders from Konark to Paradeep.

The new corridor is aimed at overcoming congestion and poor road geometry along existing routes, particularly in the Puri–Satapada and Puri–Konark sections, where growing roadside development and local traffic have affected long-distance travel efficiency.

Designed for speeds of up to 100 km per hour, the project is expected to improve regional connectivity, support economic activity, and enhance mobility across Odisha’s coastal belt. The highway will also strengthen links to key economic and logistics hubs under the PM GatiShakti initiative.

Upon completion, travel time between Rameshwar and Paradeep is expected to be reduced by nearly 2.5 hours. The project is also expected to lower fuel consumption, reduce carbon emissions, and decrease vehicle operating costs while providing faster and safer connectivity for passenger and freight movement.