New Delhi: The Union Cabinet on Wednesday approved the widening and strengthening of a key stretch of National Highway-326 in Odisha at a total cost of Rs 1,526.21 crore.
The project involves upgrading the existing two-lane road to a two-lane highway with paved shoulders from Km 68.600 to Km 311.700. It will be implemented on EPC mode under NH(O).
The upgrade is aimed at improving road safety and travel efficiency in southern Odisha. It will mainly benefit the districts of Gajapati, Rayagada and Koraput.
At present, the Mohana–Koraput section has poor geometry, sharp curves and steep gradients. These issues restrict the movement of heavy vehicles and slow freight traffic. The project will address these gaps through geometric improvements, removal of black spots and pavement strengthening.
The improved corridor will provide better connectivity with major highways such as NH-26, NH-59 and NH-16. It will also improve access to Gopalpur port, Jeypore airport and nearby railway stations.
The road links important industrial units, logistics hubs, educational institutions and tourist centres in the region. The upgrade is expected to reduce travel time by around 2.5 to 3 hours and lower vehicle operating costs.
The government said the project will support industrial growth, tourism and access to healthcare and education in tribal and backward areas. It is also expected to generate significant direct and indirect employment during construction and maintenance.
The work is targeted for completion within 24 months, followed by a five-year defect liability and maintenance period.
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