Centre Approves ₹1,562 Crore NH-326 Road Widening Project in Odisha
Cabinet nod to boost road safety, connectivity and economic growth in southern Odisha under PM Gati Shakti
Bhubaneswar: The Union Cabinet on Wednesday approved two major national highway projects worth ₹20,688 crore, including a crucial road infrastructure upgrade in Odisha. Of the total amount, ₹1,562 crore has been sanctioned for widening National Highway-326 in southern Odisha, a move expected to significantly improve connectivity, safety and logistics efficiency in the region.
The decision was announced by Union Minister for Information and Broadcasting Ashwini Vaishnaw after a Cabinet meeting chaired by Prime Minister Narendra Modi.
NH-326 Project to Strengthen Southern Odisha Connectivity
The Odisha project involves widening the Mohana–Koraput stretch of NH-326 from an existing two-lane road into a two-lane highway with paved shoulders. The project will be implemented under the National Highways (Original) Scheme on Engineering, Procurement and Construction (EPC) mode.
According to official estimates, the civil construction cost of the project stands at ₹966.79 crore, with the total allocation reaching ₹1,562 crore, including land acquisition and other associated expenses.
NH-326 is a vital road corridor connecting tribal-dominated and backward regions of southern Odisha, including parts of Gajapati and Koraput districts. The upgraded highway is expected to improve access to healthcare, education, markets and employment opportunities for thousands of people living in the region.
Addressing Road Safety and Accident-Prone Stretches
Officials said the Mohana–Koraput section currently suffers from poor road geometry, sharp curves, steep gradients and inadequate carriageway width. These conditions restrict the smooth movement of heavy vehicles and often lead to accidents, especially during the monsoon season.
The approved widening project will focus on geometric corrections, pavement strengthening and removal of identified black spots. These improvements are aimed at enhancing road safety, reducing travel time and lowering transportation costs for both passengers and goods.
Once completed, the upgraded highway will allow safer movement of commercial vehicles, improving trade links between southern Odisha and neighbouring states.
Part of PM Gati Shakti National Master Plan
Ashwini Vaishnaw said the approved highway projects align with the principles of the PM Gati Shakti National Master Plan, which focuses on creating integrated, multimodal transport infrastructure across the country.
“The approved projects are a significant step towards improving connectivity, reducing logistics costs and ensuring balanced regional development,” the minister said.
The Odisha NH-326 project is expected to complement other infrastructure initiatives in the region, including railway expansion and industrial development, strengthening the state’s overall transport ecosystem.
Cabinet Also Clears ₹19,142 Crore Maharashtra Corridor
Along with the Odisha project, the Cabinet approved a ₹19,142 crore greenfield Nashik–Solapur–Akkalkot corridor in Maharashtra. While the Maharashtra project is larger in scale, the NH-326 widening is equally important from a regional development perspective, particularly for southern Odisha’s tribal and hilly areas.
Officials said both projects together aim to improve east-west and north-south connectivity across the country, facilitating smoother movement of goods between ports, industrial hubs and inland regions.
Economic and Social Impact for Odisha
The NH-326 upgrade is expected to bring long-term economic benefits to Odisha by supporting agriculture, forest-based industries, tourism and small businesses in southern districts. Improved road infrastructure will also help reduce travel time to major towns like Koraput, Rayagada and Berhampur.
The project is seen as a major step towards inclusive development, ensuring that remote and underserved regions are better connected to the state’s growth centres.
With Cabinet approval now in place, the National Highways Authority of India (NHAI) is expected to initiate the tendering and execution process soon, paving the way for faster implementation.
