Cabinet approves 2 highway projects worth Rs 20,600 cr

New Delhi: In a significant push to road infrastructure and regional connectivity, the Union Cabinet on Wednesday approved two major highway projects worth over Rs 20,600 crore, one in Odisha and another in Maharashtra, aimed at improving travel efficiency, boosting logistics, and accelerating economic development under the PM GatiShakti National Master Plan.

Briefing the media after the Cabinet meeting, Minister of Information and Broadcasting Ashwini Vaishnaw said the decisions reflect the government’s commitment to integrated transport planning and inclusive growth.

The Maharashtra project which costs Rs 19,142 crore is being seen as a major greenfield project which will build a six-lane, access-controlled Nashik-Solapur-Akkalkot corridor at a capital cost of Rs 19,142 crore. “This project will provide connectivity to important regional cities such as Nashik, Ahilyanagar and Solapur, further connecting to Kurnool, as indicated in the map,” Vaishnaw said at a press briefing after the Cabinet meeting.

In Odisha, the Cabinet approved the widening and strengthening of National Highway-326 from Km 68.600 to Km 311.700 at a total capital cost of Rs 1,526.21 crore, including Rs 966.79 crore for civil construction.

The project will upgrade the existing two-lane highway to a two-lane road with paved shoulders under the Engineering, Procurement and Construction (EPC) mode. Vaishnaw said the upgradation of NH-326 would make travel “faster, safer and more reliable,” leading to the overall development of southern Odisha, particularly the districts of Gajapati, Rayagada and Koraput. Improved connectivity will benefit local communities, industries, educational institutions and tourism centres by enhancing access to markets, healthcare and employment opportunities.

The Mohana–Koraput stretch of NH-326 currently suffers from sub-standard road geometry, including narrow carriageways, sharp curves and steep gradients, which hamper safe and efficient movement, especially for heavy vehicles.

The project will address these deficiencies through geometric improvements, black-spot removal and pavement strengthening, enabling safer and uninterrupted movement of goods and passengers while reducing vehicle operating costs.

The upgraded highway will improve direct connectivity between Mohana and Koraput and link NH-326 with major economic corridors such as NH-26, NH-59, NH-16 and the Raipur–Visakhapatnam corridor.