Major Upgrade Approved for NH-326 in Odisha: What It Means for Local Development

The Union Cabinet has given the green light for the significant upgrade of NH-326 in Odisha, expanding it from a two-lane to a two-lane highway with paved shoulders. This project, costing Rs 1,526.21 crore, aims to enhance travel safety and speed, benefiting districts like Gajapati, Rayagada, and Koraput. Improved road access is expected to support local communities, industries, and tourism, fostering inclusive growth in the region. Discover how this development will transform connectivity and economic opportunities in southern Odisha.

By Narendra Chaudhary Dec 31, 2025, 16:15 IST

Significant Infrastructure Development in Odisha

New Delhi/Bhubaneswar: On Wednesday, the Union Cabinet sanctioned the expansion and enhancement of NH-326 in Odisha, transforming the current two-lane road into a two-lane highway with a paved shoulder, extending from 68.600 km to 311.700 km under the EPC framework.

An official announcement revealed that the overall investment for this initiative is Rs 1,526.21 crore, which encompasses a civil construction expenditure of Rs 966.79 crore.

The upgrade of NH-326 is expected to facilitate quicker, safer, and more dependable travel, leading to the comprehensive development of southern Odisha, especially aiding the districts of Gajapati, Rayagada, and Koraput.

Enhanced road connectivity will provide direct advantages to local communities, industries, educational institutions, and tourism hotspots by improving access to markets, healthcare, and job opportunities, thus fostering inclusive growth in the region.

The government officially designated the route as NH-326, which begins at its junction with NH-59 near Aska, traverses through Mohana, Raipanka, Amalabhata, Rayagada, Laxmipur, and concludes at its junction with NH-30 near Chinturu in Odisha, as per the Gazette Notification dated August 14, 2012.