Cabinet Approves NH-326 Upgrade in Odisha

  • 01 Jan 2026

On 31st December 205, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the widening and strengthening of a key stretch of National Highway 326 in Odisha at a total cost of ₹1,526.21 crore, to improve safety, connectivity, and economic activity in southern Odisha.

Key Points

  • Project Scope: The project upgrades the Mohana-Koraput section from km 68.600 to km 311.700 into a two-lane road with paved shoulders.
  • Implementation Mode: The work will be executed under the National Highways (Original) scheme on EPC (Engineering, Procurement and Construction) mode.
  • Cost Break-up: The approved outlay includes a civil construction cost of ₹966.79 crore.
  • Safety Improvements: The upgrade addresses sub-standard geometry, sharp curves, steep gradients, narrow carriageway, and removes accident-prone black spots through geometric corrections and pavement strengthening.
  • Network Connectivity: The corridor will improve links to NH-16, NH-26, and NH-59, and enhance access to Gopalpur Port, Jeypore Airport, and nearby railway stations.
  • Regional Benefits: The districts of Gajapati, Rayagada, and Koraput will gain better access to markets, healthcare, education, and jobs, benefiting tribal and aspirational regions.
  • Logistics & Industry: Improved connectivity will support faster movement of goods to coastal ports and industrial centres, boosting tourism and industrial activity.