NEW DELHI: The Union Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Tuesday approved two major infrastructure projects, one in Odisha and another in Rajasthan, with a cumulative estimated cost of over Rs 9,500 crore.
Briefing the media after the CCEA meeting, Information and Broadcasting Minister Ashwini Vaishnaw said the construction of a six-lane access-controlled Capital Region Ring Road (Bhubaneswar Bypass) in Odisha with an estimated cost of ₹8,307.74 crore, has been approved.
Approval has also been given for the construction of the greenfield Kota-Bundi airport in Rajasthan with a total estimated capital investment of Rs 1,507 crore, he added.
The Minister said the length of the ring road project for the twin capital cities of Bhubaneswar and Cuttack would be 110.875 km and it would be developed under the Hybrid Annuity Mode (HAM).
“At present, the Rameshwar-Tangi stretch of the existing National Highway faces severe congestion due to heavy traffic moving through urban centres like Khordha, Bhubaneswar, and Cuttack. The new greenfield ring road aims to divert heavy commercial vehicles away from these cities, thereby improving freight efficiency, reducing logistics costs, and promoting socio-economic development in Odisha and neighbouring eastern states,” Vaishnaw said.
The alignment will integrate with three National Highways (NH-55, NH-57, NH-655) and one State Highway (SH-65), offering seamless connectivity to economic and social hubs across the region, he said.
“It will also connect with 10 Economic Nodes, 4 Social Nodes, and 5 Logistic Nodes, along with key infrastructure such as Bhubaneswar Airport, Khordha Railway Station, a proposed Multi-Modal Logistics Park, and two major ports (Puri and Astrang),” the Minister said.
Later, in a statement, the government said that upon completion, the project is expected to generate 74.43 lakh person-days of direct employment and 93.04 lakh person-days of indirect employment, thereby creating new opportunities for local communities.
Meanwhile, the Union Cabinet also cleared the proposal for building the greenfield Kota-Bundi airport in Rajasthan, the Minister said, adding that it would be funded by the Airports Authority of India (AAI).
“For the airport, 1,089 acres of land has been provided free of cost by the Rajasthan government and the airport will have a capacity to handle 2 million passengers per annum,” he said, while noting that the new aviation facility would significantly improve regional connectivity and promote the local economy.
“The AAI will fund the project through its internal accruals and it is expected to be completed in 24 months. In the last 11 years, the number of operational airports in the country has more than doubled to 162 in 2025 from 74 in 2014. Also, the number of air passengers has increased to 41.2 crore this year from 16.8 crore in 2014,” the Minister noted.
The Project: Odisha’s 6-lane capital region ring road
Estimated cost: Rs 8,307 crore
Length of road: 110.875 km
Project completion period: 2.5 years
Mode of contract: Hybrid Annuity Model (15 years of operation and maintenance basis)
Benefits of project:
Easing traffic congestion around Bhubaneswar and Cuttack
Will increase average vehicle speed by 60 per cent (from 50 kmph to 80 kmph)
Reduce travel time by 33 per cent
Better movement of cargo including iron ore
New greenfield airport at Kota-Bundi (Rajasthan)
Estimated cost: Rs 1,507 crore (to be funded through AAI internal accruals)
Area: 1,089 acres (provided free of cost by state government)
Terminal building: 20,000 square metres
Runway: 3,200 metres x 45 metres
Projected capacity: 2 million passengers per annum
Project completion period: 24 months