NHAI Invites Fresh Bids for Odisha Coastal Highway Project

Delay-hit project sees third tender call; first 160 km to cost nearly Rs 5,000 crore

Bhubaneswar: The long-pending Odisha coastal highway project has received fresh momentum, with the National Highways Authority of India (NHAI) inviting new bids for the first phase covering 160.18 km. The project, estimated at Rs 4,961.6 crore, marks the third tender attempt in two years after earlier bids were cancelled due to administrative issues.

Under the Centre’s plan, the 346-km coastal highway from Rameshwar in Khurda district to Digha in West Bengal will be built in two phases. Of this, the stretch from Rameshwar to Paradip has already been approved by the Public Private Partnership Appraisal Committee (PPPAC) of the Ministry of Finance. The remaining portion—from Paradip to Digha—covering 185.82 km is still under detailed project report (DPR) preparation.

NHAI has invited bids for two major packages:

•  A four-lane access-controlled stretch from Rameshwar to Konark (79.4 km)
•  A two-lane carriageway with paved shoulders from Konark to Paradip (80.78 km)

According to tender documents, the construction cost for the first stretch is estimated at Rs 3,320.89 crore, while the second section will require around Rs 1,640.71 crore. Both packages are expected to be completed within 2.5 years. Bidders must submit their proposals by January 14, 2026.

Despite the tender announcement, the revised DPR for the project is yet to receive the final go-ahead from the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister. Official sources said the government hopes to secure approval before the bid opening date. If approval is delayed, NHAI may extend the tender deadline.

The coastal highway was first announced in 2015, but the project has faced continuous delays. It was originally planned as a four-lane highway. However, due to low current and projected traffic, much of the Konark–Paradip section was reduced to two lanes, prompting further revisions to the DPR.

This change came only a month after Chief Minister Mohan Charan Majhi urged Union Road Transport Minister Nitin Gadkari to upgrade the proposed two-lane design to a four-lane highway.

Earlier too, tenders had to be cancelled:

•  In May last year, bids were scrapped because of last-minute changes in alignment due to traffic estimates.
• In August 2023, tenders for three separate packages were withdrawn.

With the latest tender call, the government is aiming to finally push the project forward. Once built, the coastal highway is expected to improve connectivity, boost tourism, ease disaster evacuation routes, and support the economic growth of coastal Odisha.

If approved on time and executed as planned, the first phase could set the stage for completing the entire coastal corridor, which has been in limbo for more than a decade.

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Odisha Gains Momentum for Coastal Highway Push as Centre Clears ₹8,300-Crore Stretch