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The Union Cabinet has approved a INR 1,526.21 crore project to upgrade a 243-km stretch of NH 326 from Mohana to Koraput in southern Odisha. The project will convert the existing two-lane road into a two-lane highway with paved shoulders under the EPC model, addressing sub-standard lane widths, sharp curves, and steep gradients. It aims to improve safety, reduce travel time by 2.5-3 hours, strengthen freight movement, and connect industrial, logistics, educational, and healthcare hubs, while linking NH 326 to NH 26, NH 59, NH 16, Gopalpur port, Jeypore airport, and nearby railway stations.
The Union Cabinet recently approved a INR 1,526.21 crore project to widen and strengthen a 243-km section of National Highway 326 between Mohana and Koraput in southern Odisha. The project will upgrade the current two-lane road into a two-lane highway with paved shoulders under the Engineering, Procurement and Construction (EPC) model. The work covers kilometre 68.600 to kilometre 311.700 of NH 326, running through Gajapati, Rayagada, and Koraput districts, with INR 966.79 crore earmarked for civil construction. The project is expected to be completed within 24 months of the appointed date of each construction package, followed by a five-year defect liability period. Advertisement
The existing road suffers from narrow lanes, steep gradients, and sharp curves, which limit safe vehicle movement and slow freight flow to industrial hubs and ports. The project will address these constraints through geometric corrections, pavement strengthening, and removal of accident-prone locations, ensuring smoother and safer movement for passengers and freight. The corridor will link NH 326 with NH 26, NH 59, and NH 16, improving connectivity to Gopalpur port, Jeypore airport, and nearby railway stations.
The upgrade will reduce travel time between Mohana and Koraput by 2.5-3 hours and shorten the route by approximately 12.46 km after alignment improvements. Economic analysis indicates an economic internal rate of return of 17.95%, while financial internal rate of return is -2.32%, with benefits attributed to travel-time savings, lower vehicle operating costs, and improved safety.
The project will strengthen regional and inter-state connectivity, including links to Andhra Pradesh via the southern end of NH 326. It will connect major industrial and logistics nodes such as JK Paper, Mega Food Park, NALCO, IMFA, Utkal Alumina, Vedanta, and HAL, along with educational and healthcare institutions like the Central University of Odisha and Koraput Medical College, as well as tourism hubs including Taptapani.
The Union government highlighted that the project will generate employment opportunities during construction and maintenance, while enhancing freight and passenger movement efficiency. State officials noted that the upgraded highway will improve access to markets, education, and healthcare for local communities, especially in tribal-dominated regions, supporting inclusive regional development.
Construction will follow standard quality assurance practices, with monitoring through survey vehicles, drone mapping, and the Project Monitoring Information System, ensuring timely completion and adherence to safety standards.
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