TNI Bureau: The Union Cabinet chaired by the Prime Minister Narendra Modi today approved the widening and strengthening of NH-326.
The total cost for the project is Rs.1,526.21 crore, which includes a civil construction cost of Rs.966.79 crore.
The upgradation of NH-326 will make travel faster, safer, and more reliable, resulting in overall development of Southern Odisha, particularly benefiting the districts of Gajapati, Rayagada, and Koraput.
Improved road connectivity will directly benefit local communities, industries, educational institutions, and tourism centres by enhancing access to markets, healthcare, and employment opportunities, thereby contributing to the region’s inclusive growth.
The upgradation will provide direct and improved connectivity from Mohana–Koraput into major economic and logistics corridors — linking with NH-26, NH-59, NH-16 and the Raipur–Visakhapatnam corridor and improving last-mile access to Gopalpur port, Jeypore airport and several railway stations.
The corridor connects important industrial and logistic nodes (JK Paper, Mega Food Park, NALCO, IMFA, Utkal Alumina, Vedanta, HAL) and education/tourism hubs (Central University of Odisha, Koraput Medical College, Taptapani, Rayagada), thereby facilitating faster freight movement, reducing travel time and enabling regional economic development.
The project lies in Southern Odisha (districts of Gajapati, Rayagada and Koraput) and will significantly improve intra-state and inter-state connectivity by making vehicle movement faster and safer, stimulating industrial and tourism growth and improving access to services in aspirational and tribal areas.
The work will be implemented on EPC mode. The project is located in three districts — Gajapati, Rayagada, and Koraput. The corridor connects major towns such as Mohana, Rayagada, Laxmipur, and Koraput, providing improved intra-state connectivity within Odisha and enhancing inter-state linkage with Andhra Pradesh through the southern end of NH-326.
