Cabinet approves Widening and Strengthening of NH-326 from Km 68.600 to Km 311.700 on EPC mode in Odisha

The Union Cabinet has approved a significant infrastructure project in Odisha: the widening and strengthening of NH-326 from Km 68.600 to Km 311.700 on EPC mode, with a total cost of ₹1,526.21 crore.

Project Details
- Scope: Upgradation of the Mohana–Koraput section of NH-326 to a 2-lane with paved shoulders.
- Civil Construction Cost: ₹966.79 crore.
- Implementation: EPC (Engineering, Procurement, Construction) mode, with advanced technologies like precast structures, crash barriers, and Cement Treated Sub-Base (CTSB).
- Timeline: 24 months construction + 5 years defect liability/maintenance (total 7 years contract engagement).

Benefits
- Travel Efficiency:
- Travel time saving of ~2.5–3 hours.
- Distance saving of ~12.46 km after geometric improvements.
- Safety: Removal of black spots, curve realignments, and pavement strengthening for safer freight and passenger movement.
- Connectivity: Links Mohana–Koraput to major corridors (NH-26, NH-59, NH-16, Raipur–Visakhapatnam), improving access to Gopalpur port, Jeypore airport, and railway stations.
- Regional Development: Boosts industries (NALCO, Vedanta, Utkal Alumina, HAL, JK Paper), education hubs (Central University of Odisha, Koraput Medical College), and tourism centres (Taptapani, Rayagada).

Economic Impact
- EIRR: 17.95% (base case).
- FIRR: -2.32% (reflecting social/non-market benefits).
- Employment: Significant direct and indirect job creation during construction and maintenance.
- Socio-economic Growth: Enhances access to healthcare, education, and markets in tribal and aspirational districts (Gajapati, Rayagada, Koraput).

This project is expected to transform southern Odisha’s connectivity, reduce costs for freight operators, and stimulate industrial and tourism growth.