Cabinet Clears ₹1,526 Crore Widening of NH-326 Mohana-Koraput Stretch in Southern Odisha

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved on December 31, 2025 the widening and strengthening of the Mohana-Koraput section of National Highway 326 in Odisha at a total cost of ₹1,526.21 crore. The project covers the stretch from kilometre 68.600 to 311.700, a distance of about 243 km, and will upgrade the existing carriageway to a two-lane highway with paved shoulders. The civil construction cost is pegged at ₹966.79 crore. The upgrade passes through the Gajapati, Rayagada, and Koraput districts — regions designated as aspirational districts with large tribal populations in southern Odisha. Implementation will be under the National Highways (Original) scheme on Engineering, Procurement and Construction (EPC) mode, with a construction timeline of 24 months from the appointed date plus a five-year defect liability period. Quality will be monitored through drone mapping, Network Survey Vehicles, and a Project Monitoring Information System, with precast structures and reinforced-earth wall systems used where appropriate. The Economic Internal Rate of Return for the project is estimated at 17.95 percent. Travel time between Mohana and Koraput will be reduced by 2.5 to 3 hours and distance by around 12.5 km. The upgraded corridor enhances connectivity with NH-16, NH-26, and NH-59, and improves access to Gopalpur Port, Jeypore Airport, and several railway stations. The project will accelerate movement of goods and minerals from tribal belts to coastal ports and industrial centres and improve road safety for local communities in southern Odisha.