R ARIVANANTHAM
CHENNAI, DEC 31
In a major boost to India’s highway infrastructure and regional connectivity, the Union Cabinet has approved two landmark road projects—the widening and strengthening of NH-326 in Odisha and the construction of a 6-lane greenfield access-controlled Nashik–Solapur–Akkalkot corridor in Maharashtra—marking a significant step towards faster mobility, safer travel and economic expansion under the PM GatiShakti National Master Plan.
Cabinet Briefing by Union Minister @AshwiniVaishnaw https://t.co/TeJDBihUgm
— Ministry of Information and Broadcasting (@MIB_India) December 31, 2025
- Rs 1,526 Cr NH-326 Upgrade to Boost Southern Odisha’s Tribal and Aspirational Districts
- Rs 19,142 Cr Greenfield Expressway to Create West–East Freight Spine
- PM GatiShakti Vision Accelerates Logistics, Industry and Tourism
- Travel Time Slashed, Safety Enhanced with Modern Engineering
- Major Employment Generation Across Odisha and Maharashtra
- Projects to Drive Inclusive Growth and Inter-State Integration
NH-326 Upgrade: Lifeline for Southern Odisha
🛣️ Cabinet approves widening & strengthening of NH-326
Connecting Mohana to Koraput in Odisha
➡️ Project Length: 206.2 km | ₹1,526 Cr
➡️ 2-Lane highway with paved shoulders
➡️ Travel time to be reduced by 3 hours
➡️ Covers aspirational & tribal districts: Gajapati, Rayagada,… pic.twitter.com/Fm1UhKOQHw— Ashwini Vaishnaw (@AshwiniVaishnaw) December 31, 2025
The Cabinet approved the upgradation of NH-326 from Km 68.600 to Km 311.700 in Odisha, converting the existing sub-standard stretch into a 2-lane highway with paved shoulders on EPC mode, at a total capital cost of Rs 1,526.21 crore, including Rs 966.79 crore for civil construction.
The project will directly benefit the districts of Gajapati, Rayagada and Koraput, improving access to markets, healthcare, education, tourism and employment, particularly in tribal and backward regions.
At present, the Mohana–Koraput stretch suffers from deficient curves, steep gradients, narrow carriageways and accident-prone black spots, restricting freight movement and safety. The upgrade will correct road geometry, strengthen pavements, eliminate black spots and significantly reduce vehicle operating costs.
Economic analysis places the project’s Economic Internal Rate of Return (EIRR) at 17.95%, driven by time savings, safety improvements and logistics efficiency, despite a negative FIRR reflecting its strong social and developmental impact.
Boosting Industrial, Port and Airport Connectivity
The upgraded NH-326 will integrate southern Odisha with NH-26, NH-59, NH-16 and the Raipur–Visakhapatnam corridor, providing seamless access to Gopalpur Port, Jeypore Airport and key railway hubs.
The corridor serves major industrial and logistics nodes including NALCO, IMFA, Vedanta, Utkal Alumina, HAL, JK Paper and the Mega Food Park, while also improving connectivity to Central University of Odisha, Koraput Medical College and tourism destinations such as Taptapani and Rayagada.
EPC Mode, Advanced Technology and 24-Month Timeline
The NH-326 project will be executed on EPC mode, using modern construction technologies such as precast structures, RCC/PSC girders, reinforced-earth walls, CTSB pavements and friction slabs.
Project monitoring will include Network Survey Vehicles, drone mapping, Authority Engineers and PMIS platforms. Construction is targeted for completion in 24 months, followed by a five-year defect liability and maintenance period.
6-Lane Nashik–Solapur–Akkalkot Corridor: West-to-East Express Spine
Cabinet approves 6-Lane Greenfield Nashik–Solapur (Akkalkot) Corridor.
Part of Surat–Chennai High-Speed Corridor linking West to South
➡️ Project Length: 374 km | ₹19,142 Cr
➡️ Largest-value BOT project
➡️ Nashik–Solapur distance cut by 14% (432 km → 374 km)
➡️ Will increase… pic.twitter.com/COD5UbZWa4— Ashwini Vaishnaw (@AshwiniVaishnaw) December 31, 2025
In another major approval, the Cabinet cleared the 374-km-long 6-lane greenfield access-controlled Nashik–Solapur–Akkalkot corridor in Maharashtra on BOT (Toll) mode, with a total capital cost of Rs 19,142 crore.
The high-speed corridor will connect Nashik, Ahilyanagar, Dharashiv and Solapur, and extend connectivity towards Kurnool, creating a continuous west-to-east freight and passenger corridor.
The project will link with the Delhi–Mumbai Expressway, Agra–Mumbai corridor, Samruddhi Mahamarg, and eventually integrate with the Chennai–Hasapur highway network, enabling coast-to-coast connectivity.
Faster Travel, Safer Roads, Stronger Logistics
Designed for 100 kmph speeds with controlled access and close tolling, the corridor will reduce travel time by 17 hours (45%) and cut distance by 201 km, significantly improving freight efficiency for NICDC nodes at Kopparthy and Orvakal.
The corridor will also address the long-pending requirement for a Pune–Nashik Expressway, identified by NICDC and the Maharashtra government.
Massive Employment and Economic Multiplier Effect
The Nashik–Akkalkot project alone is expected to generate 251.06 lakh man-days of direct employment and 313.83 lakh man-days of indirect employment, while stimulating allied industries such as construction materials, logistics, equipment services and local trade.
Together, the Odisha and Maharashtra projects will act as economic growth engines, improving regional integration, industrial competitiveness, tourism potential and quality of life.
