Cabinet approves widening, strengthening of highways project in Odisha

The Union Cabinet on Wednesday (December 31, 2025) approved the widening and strengthening of NH-326 in Odisha and upgraded the existing two-lane road to a two-lane highway with asphalt shoulders from 68,600 km to 311,700 km under EPC mode.

According to an official statement, the total capital cost of the project is ₹ 1,526.21 crore, which includes construction cost of ₹ 966.79 crore.

The upgrade of NH-326 will make travel faster, safer and more reliable and this will lead to overall development of south Odisha, particularly benefiting Gajapati, Rayagada and Koraput districts, the statement said.

He added that improved road connectivity will directly benefit local communities, industries, educational institutions and tourism centers by increasing access to markets, healthcare and employment opportunities, thereby contributing to the inclusive growth of the region.

The government declared the section “Highway starting from its junction with NH-59 near Aska, passing through Mohana, Raipanka, Amalabhata, Rayagada, Laxmipur and terminating at its junction with NH-30 near Chinturu in Odisha” as NH-326 Vide Gazette Notification dated 14 August 2012.