Union Cabinet approves six-lane Bhubaneswar Bypass project for ₹8,307.74 crore

The Union Cabinet has approved the construction of a six-lane access-controlled capital region ring road (Bhubaneswar Bypass) in Odisha on Hybrid Annuity Mode (HAM) at a total capital cost of ₹8,307.74 crore, I&B Minister Ashwini Vaishnaw said on Tuesday (August 19, 2025).

Currently, connectivity between Rameshwar and Tangi on the existing National Highway experience significant congestion due to high traffic volumes, passing through highly urbanised cities Khordha, Bhubaneswar and Cuttack. To address these challenges, the 110 km-long project is proposed to be developed as a 6-lane access-controlled greenfield highway, an official statement said.

“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,” it said.

The project alignment integrates with three major National Highways (NH-55, NH-57 and NH-655) and one State Highway (SH-65), providing seamless connectivity to key economic, social, and logistics nodes across Odisha.

The statement also said that the upgraded corridor will enhance multi-modal integration by connecting with a major railway station, an airport, a proposed multi-modal logistics park (MMLP), and two major ports, thereby facilitating faster movement of goods and passengers across the region.

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 Lakhs person-days of direct and 93.04 lakh person-days of indirect employment,” it said.