Centre Approves Major NH-326 Road Infrastructure Project In Odisha

Bhubaneswar, Jan 1 (KNN) The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the widening and strengthening of a stretch of National Highway-326 (NH-326) in Odisha. 

The project involves upgrading the existing two-lane highway to a two-lane road with paved shoulders from Km 68.600 to Km 311.700 and will be implemented under the National Highways (Original) [NH(O)] programme on Engineering, Procurement and Construction (EPC) mode.

The total capital cost of the project has been approved at Rs. 1,526.21 crore, which includes a civil construction component of Rs. 966.79 crore. The project is targeted for completion within 24 months from the appointed date for each package, followed by a five-year defect liability and maintenance period.

The proposed upgradation is expected to improve travel efficiency and road safety along the Mohana–Koraput section of NH-326, which currently has sub-standard geometry, deficient curves, steep gradients and constrained carriageway width. 

These limitations affect the movement of heavy vehicles and restrict freight flow to coastal ports and industrial centres. The project will address these issues through geometric corrections, pavement strengthening, removal of accident-prone black spots and improvements in gradients, enabling safer and more efficient movement of goods and passengers.

The improved corridor is expected to enhance connectivity with major economic and logistics routes, including NH-26, NH-59, NH-16 and the Raipur–Visakhapatnam corridor. It will also strengthen last-mile access to infrastructure such as Gopalpur port, Jeypore airport and nearby railway stations. 

The highway links several industrial units and institutions, including JK Paper, NALCO, IMFA, Utkal Alumina, Vedanta, HAL, the Central University of Odisha and Koraput Medical College, as well as tourism destinations in the region.

According to the economic appraisal, the project has an estimated Economic Internal Rate of Return (EIRR) of 17.95 per cent, while the Financial Internal Rate of Return (FIRR) is negative, reflecting the project’s social and non-market benefits. The economic justification is primarily driven by reductions in travel time and vehicle operating costs, safety improvements and an estimated travel-time saving of approximately 2.5 to 3 hours, along with a distance reduction of about 12.46 km between Mohana and Koraput after geometric improvements.

Implementation will be carried out on EPC mode, with contractors required to adopt established construction and quality assurance technologies. Project monitoring will be undertaken using tools such as Network Survey Vehicles, drone-based mapping and the Project Monitoring Information System, with on-ground supervision by an appointed Authority Engineer.

The project is expected to contribute to faster and safer connectivity in southern Odisha, particularly benefiting the districts of Gajapati, Rayagada and Koraput. Improved road infrastructure is anticipated to support industrial activity, tourism, access to education and healthcare, and socio-economic development in tribal and backward areas. 

Construction and maintenance activities are also expected to generate direct and indirect employment opportunities and support local industries related to construction and logistics.

(KNN Bureau)