The ambitious 346-km coastal highway project in Odisha has suffered another setback as the National Highways Authority of India (NHAI) has cancelled bids for four project segments, adding to the over-a-decade-long delay.
The decision comes amid a sudden change in the design plan, allegedly due to reassessed traffic projections and a shift in infrastructure priorities. While the official tender annulment cited administrative reasons, senior officials aware of the matter confirmed that the move stemmed from a late-stage revision of the detailed project report (DPR). The new strategy will see the proposed highway—initially planned as a four-lane greenfield expressway—scaled down to a two-lane paved shoulder access-controlled road. The revision, insiders say, follows a recent traffic impact study which indicated that the current and anticipated vehicle volume does not justify a wider carriageway, especially with the nearby NH-16 already expanded to six lanes.
This sudden design pivot contradicts recent demands made by Odisha Chief Minister Mohan Charan Majhi, who had in April urged the Union Minister of Road Transport and Highways to upgrade the two-lane proposal to a four-lane one and expand the Bhubaneswar-Puri highway from six lanes to eight with dedicated service roads. The Centre had yet to formally respond to that proposal when NHAI quietly began redrawing the blueprint. The NHAI’s position now aligns with the Ministry of Road Transport and Highways’ guidelines, which recommend four-laning only when traffic exceeds 15,000 passenger car units (PCUs) per day in plain terrain. For now, officials insist that the two-lane design allows flexibility for phased expansion if traffic warrants it in the future.
However, the cancellation of tenders after floating them has drawn sharp scrutiny. Critics have flagged this as a glaring example of poor planning, especially since traffic assessments and feasibility reports are typically concluded well before tendering begins. The reversal has also raised concerns among industry stakeholders about policy stability and administrative inefficiency. The scrapped packages, covering 163 km from Rameswar to Ratanpur, had a combined estimated value of over ₹7,000 crore. These included key links such as the Puri-Kakatpur and Kakatpur-Erasama stretches—corridors crucial not only for coastal connectivity but also for boosting tourism and disaster resilience in the region.
This is not the first time tenders for the coastal highway have been pulled back. In August 2023, the NHAI had similarly withdrawn bids for three packages covering over 134 km, citing local opposition and issues over the revised alignment. As India continues to push for greener and more sustainable infrastructure under its net-zero carbon goals, the Odisha coastal highway was viewed as a critical piece in the broader puzzle of resilient, climate-proof mobility. Its alignment along the Bay of Bengal is particularly significant for disaster preparedness in cyclone-prone districts.
Yet, the ongoing delays and shifting plans not only cast a shadow over public confidence but also pose risks to the economic and environmental potential of this landmark project. While the phased two-lane model may align with traffic norms and cost rationalisation, its ability to meet future urban and climate demands remains uncertain. In the absence of a clear roadmap, stakeholders now await a revised timeline and renewed assurance from NHAI on the project’s sustainability and execution.
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