The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, today approved the construction of 6-Lane Access-Controlled Capital Region Ring Road (Bhubaneswar Bypass – 110.875 km) in Odisha on Hybrid Annuity Mode (HAM) at a total capital cost of Rs 8307.74 crore.
Currently, connectivity between Rameshwar to Tangi on existing National Highway experience significant congestion due to high traffic volumes, passing through highly urbanized cities Khordha, Bhubaneswar and Cuttack. To address these challenges, the project is proposed to be developed as 6-Lane Access-Controlled Greenfield Highway, according to an official statement.
The project will provide significant benefit to Odisha and other eastern states by diverting heavy commercial traffic away from Cuttack, Bhubaneswar and Khordha cities. This will enhance the efficiency of freight movement, reducing logistics cost and driving socio-economic growth in the region, added the CCEA in the statement.
Cabinet approved 6-lane access-controlled ring road from Rameshwar to Tangi, easing traffic around Bhubaneswar & Cuttack.
🛣️ 111 km | ₹8,307 Cr✅ Will boost average vehicle speed
✅ Will enable multi-modal connectivity & improve cargo movement, including iron ore. pic.twitter.com/akVCUeLxBB— Ashwini Vaishnaw (@AshwiniVaishnaw) August 19, 2025
The project alignment integrates with 3 major National Highways (NH-55, NH-57 and NH-655) and 1 State Highway (SH-65), providing seamless connectivity to key economic, social, and logistics nodes across Odisha.
Additionally, the upgraded corridor will enhance multi-modal integration by connecting with 10 Economic Nodes, 04 Social Nodes and 05 Logistic Nodes, providing enhanced multimodality with 1 Major Railway Station, 1 Airport, 1 proposed Multi-Modal Logistics Park (MMLP), and 2 major Ports thereby facilitating faster movement of goods and passengers across the region, it added.
Upon completion, the bypass will play a pivotal role in regional economic growth, strengthening connectivity between major religious and economic centres and opening new avenues for trade and industrial development.
“The project will also generate approximately 74.43 lakh person-days of direct and 93.04 lakh person-days of indirect employment, and will open new avenues of growth, development and prosperity in surrounding regions,” the CEEA stated.
