The cabinet committee on economic affairs chaired by Prime Minister Narendra Modi on Tuesday cleared the construction of a six-lane access-controlled Capital Region Ring Road (Bhubaneswar Bypass) in Odisha under the Hybrid Annuity Mode (HAM).

The 110.87km project will cost ₹8,307.74 crore and is expected to ease the severe traffic congestion on the Rameshwar–Tangi stretch of the national highway, which cuts through Khordha, Bhubaneswar and Cuttack. Officials said the bypass will divert heavy
commercial traffic away from the urban centres, reduce logistics costs and improve freight efficiency.

The road is likely to create about 74.43 lakh person-days of direct and 93.04 lakh person-days of indirect employment.

The alignment will integrate three national highways (NH55, NH57 and NH655) and one state highway (SH65), linking key economic and logistics hubs across Odisha. It will also connect with 10 economic nodes, four social nodes and five logistics nodes, providing multimodal links to a major railway station, the airport, a proposed multi-modal logistics park and two ports.

Officials said the bypass will not only decongest Bhubaneswar, Cuttack and Khordha but also strengthen connectivity to religious and industrial centres, creating new opportunities for trade and investment.

Chief minister Mohan Charan Majhi welcomed the decision. “The landmark infrastructure project will significantly strengthen connectivity, decongest major urban centres, enhance logistics efficiency and open new avenues for economic growth and prosperity in Odisha and the eastern region,” he posted on X.

Bhubaneswar BJP MP Aparajita Sarangi, who had lobbied for the project since her first term, called it a “dream come true.” She said she had repeatedly pressed the matter with Prime Minister Modi and Union minister Nitin Gadkari.

“Once completed, the ring road will not only decongest Bhubaneswar, Cuttack and Khordha but also serve as a catalyst for industrial growth, trade expansion and regional prosperity,” she said.