Union Cabinet clears Rs 1,526 crore for NH-326 upgradation project in Odisha

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Union Cabinet clears Rs 1,526 crore for NH-326 upgradation project in Odisha

The project involves the widening and strengthening of the existing two-lane highway into a two-lane road with paved shoulders, covering a stretch from Km 68.600 to Km 311.700.

Published by Dibyajyoti | December 31, 2025

TheUnion Cabineton Wednesday approved the upgradation of National Highway-326 (NH-326) inOdisha, a major infrastructure initiative aimed at improving connectivity, road safety and socio-economic development in the southern parts of the state.

The project involves the widening and strengthening of the existing two-lane highway into a two-lane road with paved shoulders, covering a stretch from Km 68.600 to Km 311.700.

Enhance Travel Efficiency

The project will be executed under the Engineering, Procurement and Construction (EPC) mode at an estimated cost of Rs 1,526.21 crore. Once completed, the upgraded highway is expected to significantly enhance travel efficiency and safety across key districts, including Gajapati, Rayagada and Koraput, which include aspirational and tribal regions.According to official sources, the NH-326 upgradation will provide direct and improved connectivity between Mohana and Koraput, linking the region to major national corridors such as NH-26, NH-59, NH-16, and the Raipur–Visakhapatnam corridor. The project will also improve last-mile connectivity to important infrastructure hubs, includingGopalpurPort, nearby airports and multiple railway stations, thereby strengthening logistics and freight movement.

The government said the project would make travel faster, safer and more reliable, reducing travel time and addressing accident-prone black spots along the route. Improved road infrastructure is expected to facilitate access to markets, healthcare, education and employment opportunities, benefiting local communities.

Officials added that the highway upgradation will give a boost to industrial growth, tourism and regional development, while supporting inclusive growth in southern Odisha. The project forms part of the Centre’s broader push to expand and modernise national highway infrastructure to support economic growth and regional connectivity.