BHUBANESWAR: The Union Cabinet chaired by the Prime Minister Narendra Modi on Wednesday approved the widening and strengthening of Mohana-Koraput section of NH-326 at an estimated cost of Rs 1,526.21 crore.
Sources said the existing two-lane of the 243.1 km stretch (from 68.6 km to 311.7 km) of the highway will be widened to two-lane with paved shoulder on engineering, procurement and construction (EPC) mode. The total capital cost for the project includes a civil construction cost of Rs 966.79 crore.
In a briefing about the cabinet decision in New Delhi, Union I&B Minister Ashwini Vaishnaw said the upgradation of NH-326 will make travel faster, safer and more reliable, resulting in overall development of southern Odisha, particularly benefiting the districts of Gajapati, Rayagada and Koraput.
“Improved road connectivity will directly benefit local communities, industries, educational institutions and tourism centres by enhancing access to markets, healthcare, and employment opportunities, thereby contributing to the region’s inclusive growth,” he said.
The Mohana-Koraput section of NH-326 at present has sub-standard geometry (intermediate lane/two-lane, many deficient curves and steep gradients) and the existing road alignment, carriageway width and geometric deficiencies constrain safe, efficient movement of heavy vehicles and reduce freight throughput to coastal ports and industrial centres.
These constraints will be removed by upgrading the corridor to two-lane with paved shoulders with geometric corrections (curve realignments and gradient improvements), removal of black spots and pavement strengthening, enabling safe and uninterrupted movement of goods and passengers and reducing vehicle operating costs.
After upgradation, the highway will provide direct and improved connectivity from Mohana-Koraput into major economic and logistics corridors, linking with NH-26, NH-59, NH-16 and the Raipur-Visakhapatnam corridor, besides improving last-mile access to Gopalpur port, Jeypore airport and several railway stations in the region.
The corridor connects important industrial and logistic nodes, including JK Paper, mega food park, Nalco, IMFA, Utkal Alumina, Vedanta, HAL and education/tourism hubs. Once the highway is strengthened, it will facilitate faster freight movement, reducing travel time and enabling regional economic development.
Official sources said the work will be completed in 24 months from the appointed date for each package, followed by a five-year defect liability/maintenance period. Contract award will follow after completion of statutory clearances and required land possession.
The project is aimed at providing faster and safer movement of traffic and improving connectivity between the southern and eastern parts of Odisha, particularly Gajapati, Rayagada and Koraput districts with the rest of the state and neighbouring Andhra Pradesh.
The Prime Minister termed the project a boost for Odisha's progress. “The Union Cabinet has approved the widening and strengthening of NH-326 in Odisha. This important project will make travel faster and improve connectivity across Gajapati, Rayagada and Koraput. It will create employment opportunities, boost tourism and industry, as well as accelerate inclusive development in tribal areas,” Modi posted on X.
Chief Minister Mohan Charan Majhi has expressed sincere gratitude to the PM and Union Minister for Road Transport and Highways Nitin Gadkari for the widening of NH-326. “This crucial infrastructure will significantly improve all-weather connectivity to remote and interior regions of southern Odisha, particularly tribal-dominated areas. It will enable better access to education, healthcare, markets, and employment opportunities, while accelerating economic activity, enhancing road safety, and contributing to inclusive and holistic development of the region and the state as a whole,” he said.