The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the widening and strengthening of National Highway-326 (NH-326) in Odisha, covering the stretch from km 68.600 to km 311.700.

The project, implemented under the National Highways (Original) programme on EPC mode, will upgrade the existing two-lane highway to a two-lane road with paved shoulders at a total cost of Rs 1,526.21 crore, including Rs. 966.79 crore for civil construction. It is expected to be completed within 24 months from the appointed date for each package, followed by a five-year defect liability and maintenance period. The upgrade aims to correct sub-standard geometry, steep gradients, constrained carriageway width, and accident-prone black spots, improving road safety and travel efficiency.

The project will enable safer and more efficient movement of goods and passengers, benefiting industries, institutions, and tourism in southern Odisha. It will enhance freight movement to coastal ports, strengthen connectivity with NH-26, NH-59, NH-16, Raipur–Visakhapatnam corridor, and last-mile access to Gopalpur port, Jeypore airport, and nearby railway stations.