New Delhi, 31 December (H.S.): The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, on Wednesday approved the widening and strengthening of National Highway-326 from km 68.600 to km 311.700 in Odisha. The project involves upgrading the existing two-lane carriageway to a two-lane road with paved shoulders under the Engineering, Procurement, and Construction (EPC) mode.

The total capital outlay for the project stands at ₹1,526.21 crore, including a civil construction cost of ₹966.79 crore. The development represents a crucial step toward improving intra-state and inter-state connectivity in southern Odisha, benefiting the districts of Gajapati, Rayagada, and Koraput.

Enhanced Connectivity and Regional Development

The upgraded stretch, part of the Mohana–Koraput section of NH-326, currently suffers from substandard road geometry and narrow lanes that impede freight and passenger movement. Its upgradation will correct alignment deficiencies, eliminate black spots, and strengthen the pavement to enable safe, faster, and uninterrupted traffic movement.

The improved corridor will link major national and economic corridors, including NH-26, NH-59, NH-16, and the Raipur–Visakhapatnam corridor, offering direct access to key logistic hubs such as Gopalpur Port, Jeypore Airport, and several regional railway stations. It will also enhance connectivity to prominent industrial nodes including NALCO, JK Paper, Utkal Alumina, Vedanta, IMFA, and HAL, along with educational and tourism centres like Central University of Odisha and Taptapani Hot Springs.

According to the project’s economic analysis, the Economic Internal Rate of Return (EIRR) is estimated at 17.95%, confirming strong economic viability through time and cost savings, despite a negative Financial Internal Rate of Return (FIRR).

The upgrade is projected to reduce travel time by up to three hours and cut the distance between Mohana and Koraput by approximately 12.5 km.Implementation and Employment ImpactThe project will be completed within 24 months from the appointed date, followed by a five-year defect liability and maintenance period, making it a seven-year total engagement.

Modern construction technologies such as precast RCC/PSC structures, cement-treated sub-base layers, and automated quality monitoring systems like Network Survey Vehicles (NSV) and drone-based mapping will ensure timely and high-quality execution.The initiative is expected to generate thousands of employment opportunities, with substantial demand for both skilled and unskilled labor during the construction and maintenance phases.

Local industries supplying materials, transportation, and equipment support services are also expected to benefit, catalyzing broader economic activity in southern Odisha.Once completed, the NH-326 upgradation will not only strengthen Odisha’s internal connectivity but will also enhance economic integration with neighboring Andhra Pradesh, driving inclusive development across aspirational and tribal regions.

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Hindusthan Samachar / Jun Sarkar