Kendrapara, Oct. 9: Problems with land acquisition and withdrawal of project contractor have delayed progress of the Cuttack-Chandballi state highway project, which is now certain to miss its March 2016 deadline.

The State Highway No. 7 is regarded as one of the busiest road routes in the state and a lifeline for Kendrapara residents. The project would see the 106-km stretch widened to 22 metres to ease vehicular traffic movement. The highway also traverses Bhadrak and Cuttack districts. The completed project would reduce the distance between Bhubaneswar and Calcutta. It would also restore connectivity with the Bhitarkanika National Park.

Work on the project got under way two years ago and was scheduled for completion by March 2016. But so far, less than 10 per cent work has been done. The World Bank-funded project is being implemented under the Odisha State Roads Project scheme.

The project was divided into two phases. Work on the 49km Jagatpur-Duhuria stretch has stopped. The firm, which was awarded the contract to complete the project, withdrew following extortion attempts by local gangsters. Only 2 per cent work has been done on the stretch. On the other hand, the 57km stretch from Duhuria to Chandballi fared a little better with 10 per cent work being done, said assistant executive engineer of roads and building division Amulya Ranjan Sinha.

The officials also had to relocate several roadside places of worship. Besides, many permanent houses had also come up. The work is getting delayed in certain patches for these reasons, he said.

Nearly 94 of the 139 places of worship have been relocated so far. The forest development corporation has undertaken a plantation drive to compensate for the loss of 7,811 trees that were cut, an official said.

The government had decided to widen the highway in 2006 using funds from the World Bank. It was initially planned to be completed by 2008-09. Densely populated villages, illegal encroachments and unauthorised permanent constructions over private or government lands along the highway created problems with land acquisition.