The public private partnership appraisal committee (PPPAC) of the Ministry of Finance (MoF) has approved a significant portion of the Odisha Coastal Highway, from Rameshwar to Digha, with an estimated cost of Rs 8,300.79 crore. 

The 160.18 km stretch, part of a 346 km greenfield project, will be built on a hybrid annuity model (HAM) in two phases: a four-lane from Rameshwar to Kakatpur and a two-lane with paved shoulders from Kakatpur to Paradip. Although the stretch had faced delays due to changes in traffic volume projections, land acquisition is progressing, with 70 percent of land acquired for Package-I, and 30 percent in Package-II. This portion of the highway had already received environmental and CRZ clearance, while online application has been filed for stage-I forest clearance. 

The project will include major infrastructure like bridges, flyovers, and rail overbridges, specifically, the construction of 36 major bridges (including a 3.3 km bridge over the Mahanadi River), 89 minor bridges, 376 culverts, three flyovers, six viaducts, three ROBs, and 45 vehicle underpasses.