The Union cabinet on Wednesday approved a new coastal highway from Rameshwaram in Tamil Nadu to Paradeep in Odisha at a total cost of ₹8,300 crore.

The project will later be extended to Digha in Bengal.

The 160.18km highway project from Rameshwaram to Paradeep will be constructed in two steps under a hybrid annuity model, a public-private partnership framework.

Under the first “package”, the highway will be constructed from Rameshwaram to Konark in Odisha, and the second “package” will link Konark and Paradeep.

Addressing the briefing, information and broadcasting minister Ashwini Vaishnaw said the project would cover the entire coastal land of Odisha and later be extended
to Digha.

According to an official statement, the highway will pass through Khurda, Puri, Kendrapada and Jagatsinghpur districts of Odisha.

“The instant projects are proposed to have a four-lane configuration from Rameshwar to Konark (Package-1) and two-lane with paved shoulder from Konark to Paradeep (Package-2), ensuring design speed of 100km/hour and improved travel efficiency across the districts of Khurda, Puri, Kendrapada and Jagatsinghpur in Odisha,” the government’s statement said, asserting that the project would enhance regional mobility and promote socio-economic development.

The statement said that upon completion, travel time is expected to reduce by two and a half hours between Rameshwaram and Paradeep, while providing safe, fast
and uninterrupted connectivity for both passenger and freight traffic.