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Cabinet clears Rs 8,307 crore capital region ring road project in Odisha under HAM model

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New Delhi | August 19, 2025 4:15:23 PM IST
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Tuesday approved the construction of a 6-lane Access-Controlled Capital Region Ring Road (Bhubaneswar Bypass - 110.875 km) in Odisha on Hybrid Annuity Mode (HAM) at a total capital cost of Rs 8307.74 crore.

Currently, connectivity between Rameshwar and Tangi on the existing National Highway experience significant congestion due to high traffic volumes, passing through highly urbanised cities Khordha, Bhubaneswar and Cuttack. To address these challenges, the project is proposed to be developed as a 6-Lane Access-Controlled Greenfield Highway.

According to an official release, the project will provide significant benefit to Odisha and other eastern States by diverting heavy commercial traffic away from Cuttack, Bhubaneswar and Khordha Cities. This will enhance the efficiency of freight movement, reducing logistics costs and driving socio-economic growth in the region.

Speaking at the cabinet brifing, Union Minister Ashwini Vaishnaw, "A six-lane access-controlled ring road is being developed for Cuttack and Bhubaneswar. Cuttack and Bhubaneswar are practically twin cities, separated by a river. Cuttack is a 5,000-year-old city, one of the oldest in the world, while Bhubaneswar was developed as the new capital. In reality, the two cities function as a single urban unit, and this project has been undertaken to support and enhance their joint development."

The project alignment integrates with 3 major National Highways (NH-55, NH-57 and NH-655) and 1 State Highway (SH-65), providing seamless connectivity to key economic, social, and logistics nodes across Odisha. Additionally, the upgraded corridor will enhance multi-modal integration by connecting with 10 Economic Nodes, 04 Social Nodes and 05 Logistic Nodes, providing enhanced multimodality with 1 Major Railway Station, 1 Airport, 1 proposed Multi-Modal Logistics Park (MMLP), and 2 major Ports thereby facilitating faster movement of goods and passengers across the region.

Upon completion, the bypass will play a pivotal role in regional economic growth, strengthening connectivity between major religious and economic centers and opening new avenues for trade and industrial development. The project will also generate approximately 74.43 Lakhs person-days of direct and 93.04 lakh person-days of indirect employment, and will open new avenues of growth, development and prosperity in surrounding regions. (ANI)

 
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