NHAI issues fresh tender for Rs 5,000 crore coastal highway project in Odisha

In a renewed push to kickstart the long-pending coastal highway project in Odisha, the National Highways Authority of India (NHAI) has launched a fresh round of bidding for the initial phase of the corridor. The project, covering roughly 160 km between Rameshwar in Khiordha and Paradip, is estimated to cost Rs 4961.6 crore and will be implemented under the hybrid annuity model.

According to The New Indian Express report, this marks the third tendering attempt, as bids invited earlier during the past two years had to be scrapped due to administrative and planning challenges.

The highway, originally announced nearly a decade ago, is designed to connect Rameshwar in Khordha district with Digha in West Bengal, spanning more than 340 km in two phases. The ongoing tender focuses on two segments, Rameshwar–Konark and Konark–Paradip, with construction timelines targeted at about 30 months.

Although the public-private partnership appraisal committee has cleared the first phase, the revised proposal is still awaiting the green signal from the Cabinet Committee on Economic Affairs. Officials indicate approval is likely before technical bid evaluation begins, and timelines could be adjusted if necessary.

The project has witnessed repeated alterations, especially after a decision to downgrade large portions from four lanes to two lanes, citing traffic studies. The modification occurred shortly after Chief Minister Mohan Charan Majhi urged the Union Road Transport Ministry to rethink the lane reduction.

Also Read: Congress MLA Sofia Firdous defends father’s vote for Droupadi Murmu in Presidential election

Tenders issued in both 2023 and 2024 had to be withdrawn due to issues ranging from alignment changes to reconsideration of project design.

If implemented as scheduled, the coastal highway is expected to improve disaster response capability, boost tourism in Konark–Puri belt, and strengthen road connectivity between Odisha and West Bengal.