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Cabinet clears Rs 8,307 crore Ring Road Project for Odisha
admin | August 19, 2025 7:21 PM CST

New Delhi: The Union Cabinet on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the construction of a six-lane access-controlled Capital Region Ring Road in Odisha. It is aimed to ease traffic congestion and boost regional connectivity.

The 110.875 km Bhubaneswar Bypass project will be built on the Hybrid Annuity Mode (HAM) at a capital cost of Rs 8,307.74 crore. It is designed as a greenfield highway to decongest the existing National Highway stretch between Rameshwar and Tangi, which faces heavy traffic through the urban hubs of Khordha, Bhubeneswar and Cuttack.

Corridor to link key infrastructures

According to the government, the project will play a crucial role in diverting heavy commercial vehicles away from these cities. It will, in turn, improve the efficiency of freight movement, lower logistics costs and accelerate socio-economic growth in Odisha and neighbouring states.

The alignment will integrate with three major National Highways, NH-55, NH-57, NH-655 and one State Highway (SH-65). It will also connect 10 economic nodes, four social nodes and five logistics nodes. It will, thereby, enhance multi-modal integration. The corridor will link key infrastructure such as a major railway station, an airport, two ports and a proposed Multi-Modal Logistics Park (MMLP). It will facilitate faster movement of both goods and passengers.

Aims to boost connectivity, enhance trade

According to reports, the project is expected to strengthen connectivity between major religious and industrial centres and open up new avenues of trade and development. Besides long-term economic benefits, the construction phase itself is estimated to generate around 74.43 lakh person-days of direct employment and 93.04 lakh person-days of indirect employment.

Once completed, the Ring Road is expected to transform transport infrastructure in Odisha and offer faster transit, improved logistics along with opportunities for industrial growth. It will also ease urban congestion in Bhubaneswar, Cuttack and Khordha.

 


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