Rs 8,300 Crore Capital Region Ring Road Project in Odisha Moves Ahead with Tender Finalisation.

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Proposed alignment area of the Capital Region Ring Road project connecting Bhubaneswar and Cuttack in Odisha.

Rs 8,300 Crore Capital Region Ring Road Project in Odisha Moves Ahead with Tender Finalisation.

Odisha’s ambitious Capital Region Ring Road project worth Rs 8,300 crore has advanced with the finalisation of tenders for three packages under the Hybrid Annuity Mode. The six-lane, 110-km project aims to ease congestion between Bhubaneswar and Cuttack and improve regional connectivity.

Published by Diptimayee | February 26, 2026

The ambitious Capital Region Ring Road project in Odisha has achieved significant progress with the finalisation of tenders for three key packages under the Hybrid Annuity Mode (HAM).

Three construction firms have been selected for the execution of the packages, marking a major milestone in the implementation of the long-pending infrastructure project. The six-lane ring road, spanning approximately 110 kilometres, will connect Khordha Rameswar–Bilipada and Govindpur–Cuttack Tangi, forming a crucial corridor to decongest the capital region.

The project is designed to ease mounting traffic pressure between Bhubaneswar and Cuttack while strengthening connectivity around the rapidly expanding urban belt.

Investment And Project Scope

The Government of India has allocated Rs 8,300 crore for the project. According to officials, the total investment covers land acquisition, utility shifting, forest clearances, financial costs, GST, and other essential components.

Virendra Singh, Regional Officer of National Highways Authority of India (NHAI), stated that each of the three packages is approximately 40 kilometres in length. Around Rs 1,500 crore will be spent on each phase. The financial bids have already been opened, and the L1 bidders have been identified.

He further informed that nearly 90 per cent of the preparatory work involves land handover, which is currently underway. The project is expected to commence by March next year.

Clearances And Highway Upgrades

The project recently received clearance from the Union Ministry of Forest and Environment, clearing a major procedural hurdle.

In addition to the ring road construction, approximately Rs 60 crore will be invested in upgrading National Highway 16. The upgrades will include installation of modern signboards, road studs, flexible road markers, and high-mast lights to improve road safety and visibility.

Upon completion, the Capital Region Ring Road is expected to significantly reduce congestion on NH-16 and streamline vehicular movement between Cuttack and Bhubaneswar, providing long-term relief to commuters and boosting regional economic growth.