The project, to be executed under the EPC (Engineering, Procurement, and Construction) mode, is set to cost Rs 1,526.21 crore, with Rs 966.79 crore allocated for civil construction.
Photo: IANS
The Union Cabinet on Wednesday approved a major upgrade of National Highway 326 in Odisha, widening and strengthening the existing 2-lane road from Km 68.600 to Km 311.700. The project, to be executed under the EPC (Engineering, Procurement, and Construction) mode, is set to cost Rs 1,526.21 crore, with Rs 966.79 crore allocated for civil construction.
Minister of Information and Broadcasting Ashwini Vaishnaw highlighted the significance of the project at a press briefing, stating, “The upgradation of NH-326 will make travel faster, safer, and more reliable, resulting in the overall development of southern Odisha, particularly benefiting the districts of Gajapati, Rayagada, and Koraput.”
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He added, “Improved road connectivity will directly benefit local communities, industries, educational institutions, and tourism centres by enhancing access to markets, healthcare, and employment opportunities, thereby contributing to the region’s inclusive growth.”
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The current stretch between Mohana and Koraput suffers from poor road geometry, narrow carriageways, and sharp curves, which hinder safe and efficient transport, especially for heavy vehicles. The upgrade will include geometric improvements, removal of accident-prone black spots, and pavement strengthening to ensure safer, uninterrupted movement and lower vehicle operating costs.
This upgrade will also improve connectivity by linking NH-326 with major economic corridors such as NH-26, NH-59, NH-16, and the Raipur–Visakhapatnam route. The enhanced highway will provide better access to Gopalpur port, Jeypore airport, and key railway stations. It connects vital industrial units, including JK Paper, Mega Food Park, NALCO, IMFA, Utkal Alumina, Vedanta, and HAL, as well as important educational and tourism destinations like the Central University of Odisha, Koraput Medical College, and Taptapani.
Economic analysis indicates an Economic Internal Rate of Return (EIRR) of 17.95 per cent, driven by travel-time savings of 2.5 to 3 hours and a reduction in distance by about 12.46 km between Mohana and Koraput.
The project will employ advanced construction technologies, including precast structures and monitoring tools such as drones and survey vehicles. Completion is targeted within 24 months of contract commencement, followed by a five-year maintenance period.
The initiative is expected to generate significant employment opportunities across skill levels during construction and maintenance phases and will bolster local industries involved in materials supply, transport, and equipment services.
Traversing the districts of Gajapati, Rayagada, and Koraput, the highway connects key towns and strengthens both intra-state and inter-state connectivity with Andhra Pradesh. The government has officially designated this corridor—from its junction with NH-59 near Aska, passing through Mohana, Raipanka, Amalabhata, Rayagada, and Laxmipur, to its junction with NH-30 near Chinturu—as NH-326.
This strategic infrastructure investment aims to transform transportation, foster economic growth, and promote inclusive development in southern Odisha’s tribal and backward regions.
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