Cabinet approves ₹8,308 cr 6-lane Bhubaneswar Bypass to ease city traffic

The Cabinet approved a ₹8,308 crore, six-lane Bhubaneswar Bypass in Odisha; stretching 110.9 km, it connects major cities, highways, ports and will boost traffic flow and growth

Prime Minister Narendra Modi-led Cabinet Committee on Economic Affairs (CCEA) on Tuesday approved the construction of a six-lane, access-controlled Capital Region Ring Road (Bhubaneswar Bypass) in Odisha under the hybrid annuity model (HAM). The total project cost is ₹8,307.74 crore, a PIB release said.

 

Why the project matters

 

Currently, the stretch from Rameshwar to Tangi on the existing National Highway faces severe traffic congestion. Heavy traffic flows through urban centres such as Khordha, Bhubaneswar, and Cuttack, causing delays and higher logistics costs.

 

To tackle these challenges, the new highway will be developed as a six-lane access-controlled greenfield corridor, which will help in diverting heavy commercial vehicles away from city centres. This will improve freight efficiency, reduce transport costs and drive economic growth in Odisha and neighbouring states.   

 

 

Connectivity

 

The bypass will link with three major National Highways — NH55, NH57, NH655 — and one state highway SH65, providing seamless connectivity across Odisha.

 

It will also enhance multi-modal transport by connecting with:

• One major railway station (Khordha)

• One airport (Bhubaneswar)

• One proposed Multi-Modal Logistics Park (MMLP)

• Two major ports (Puri and Astrang)

 

The corridor connects 10 economic nodes, including SEZs, mega food parks, textile and pharma clusters and fishing clusters, as well as four social nodes in aspirational, tribal and LWE-affected districts.

 

Boost to regional economy

 

After completion, the Bhubaneswar Bypass will strengthen trade, industrial development and connectivity between major economic and religious centres. It is expected to generate 7.443 million person-days of direct employment and 9.304 million person-days of indirect employment.

 

Project details

 

• Project name: Six-lane access-controlled greenfield Capital Region Ring Road (Bhubaneswar Bypass)

• Corridor: Kolkata-Chennai

• Length: 110.875 km

• Total civil cost: ₹4,686.74 crore

• Land acquisition cost: ₹1,029.43 crore

• Total capital cost: ₹8,307.74 crore

• Mode: hybrid annuity model (HAM)

• Major cities connected: Khordha, Bhubaneswar, Cuttack, Dhenkanal

• Annual average daily traffic (FY25): 28,282 passenger car units (PCU)