Cabinet Clears ₹8,308 Crore Six-Lane Bhubaneswar Bypass Project

The Union Cabinet has approved the construction of a six-lane access-controlled ring road (Bhubaneswar Bypass) in Odisha, with a total capital outlay of ₹8,307.74 crore.

Information and Broadcasting Minister Ashwini Vaishnaw announced the decision on Tuesday, noting that the project will be executed under the Hybrid Annuity Mode (HAM).

At present, the stretch between Rameshwar and Tangi on the National Highway suffers from severe congestion due to heavy traffic flowing through the densely urbanised cities of Khordha, Bhubaneswar and Cuttack. The 110-km greenfield six-lane corridor will significantly reduce traffic congestion in these regions.

According to the official statement, the bypass will divert heavy commercial vehicles away from the core cities, improving freight efficiency, cutting logistics costs and boosting socio-economic growth across the state.

The project designers have integrated it with three major National Highways, NH-55, NH-57, and NH-655, along with State Highway 65.

This alignment will provide seamless connectivity to important social, economic and logistics hubs in Odisha.

Additionally, the corridor will connect to multi-modal transport facilities, including a major railway station, the state’s airport, a proposed multi-modal logistics park (MMLP), and two key ports.
This will facilitate faster movement of both passengers and goods while strengthening Odisha’s role as a gateway to eastern India.

Employment and economic impact

Beyond connectivity, the project promises substantial employment generation. The government estimates that construction will create about 74.43 lakh person-days of direct employment and an additional 93.04 lakh person-days of indirect employment opportunities.

Once operational, the bypass will connect major religious and economic centres, encouraging trade, tourism and industrial development in the region.

The government also expects the project to enhance Odisha’s integration with other eastern states, creating fresh opportunities for investment and commerce.

The Bhubaneswar bypass project aligns with India’s broader infrastructure push to expand modern highways under the Bharatmala Pariyojana. Officials believe the new corridor will not only ease local traffic but also serve as a catalyst for balanced regional growth.

Improved freight corridors, multi-modal linkages, and industrial connectivity are transforming Odisha’s infrastructure, positioning Bhubaneswar at the heart of eastern India’s logistics and trade ecosystem.

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