The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to enhance the existing 2-lane road to a 2-lane road with paved shoulders in Odisha, stretching from km 68.600 to km 311.700 of NH-326. This project, costing Rs 1,526.21 crore, is set to boost both intra-state and inter-state connectivity, making travel faster and safer in southern Odisha’s Gajapati, Rayagada, and Koraput districts.
The initiative aims to stimulate industrial and tourism growth while enhancing access to services in aspirational and tribal areas. The total project cost includes a civil construction expense of Rs 966.79 crore, as per the Cabinet Committee on Economic Affairs (CCEA).
By upgrading NH-326, travel in southern Odisha will become more efficient, reliable, and secure, fostering overall development in the region. This move is expected to particularly benefit Gajapati, Rayagada, and Koraput districts. The improved road connectivity will have a positive ripple effect on local communities, industries, educational institutions, and tourism centers by improving access to markets, healthcare, and job opportunities, thereby promoting inclusive growth in the area.
The project will address the sub-standard geometry of the Mohana–Koraput section of NH-326, characterized by intermediate lanes, deficient curves, and steep gradients. Upgrading the corridor to a 2-lane road with paved shoulders will involve geometric corrections, removal of black spots, and pavement strengthening to facilitate safe and uninterrupted movement of goods and passengers.
This upgradation will establish better connectivity from Mohana–Koraput to key economic and logistics corridors, linking with NH-26, NH-59, NH-16, and the Raipur–Visakhapatnam corridor. It will also enhance last-mile access to Gopalpur port, Jeypore airport, and various railway stations, benefiting industrial and logistic nodes, education/tourism hubs, and facilitating faster freight movement and regional economic growth.
The project is slated for completion within 24 months from the appointed date for each package, followed by a five-year defect liability/maintenance period, totaling a seven-year contract engagement — two years for construction and five years for the defect liability/maintenance period.
