Bhubaneswar: The Union Cabinet has signed off on a massive road project for Odisha. In a bid to ease congestion, a six-lane ring road around Bhubaneswar is coming up, meant to take the pressure off the state capital and its surrounding cities. The bypass, stretching just under 111 kilometres between Rameshwar and Tangi, will be built under the hybrid annuity model, at an estimated cost of Rs 8,307.74 crore. Announcing the project on X (formerly Twitter), Union Minister Ashwini Vaishnaw wrote: “Cabinet approved 6-lane access-controlled ring road from Rameshwar to Tangi, easing traffic around Bhubaneswar & Cuttack. 🛣️ 111 km | ₹8,307 Cr ✅ Will boost average vehicle speed ✅ Will enable multi-modal connectivity & improve cargo movement, including iron ore.”
Cabinet approved 6-lane access-controlled ring road from Rameshwar to Tangi, easing traffic around Bhubaneswar & Cuttack.
🛣️ 111 km | ₹8,307 Cr✅ Will boost average vehicle speed
✅ Will enable multi-modal connectivity & improve cargo movement, including iron ore. pic.twitter.com/akVCUeLxBB— Ashwini Vaishnaw (@AshwiniVaishnaw) August 19, 2025
The need for the bypass
At present, the Rameshwar–Tangi stretch of National Highway-16 experiences severe congestion, with heavy vehicles moving through the densely populated hubs of Khordha, Bhubaneswar, and Cuttack. Long-distance trucks, buses, and local commuters all compete for space on the same stretch of road. This leads to delays, traffic bottlenecks, and higher logistics costs.
The new bypass is designed to divert heavy commercial traffic away from these urban centres, improving freight efficiency and reducing overall transport costs. Officials expect the corridor to ease movement for both goods and passengers, providing a long-term boost to Odisha’s economy and neighbouring states.
More than just a road
The project is more than a traffic fix. The planners have projected the road to integrate with three National Highways (NH-55, NH-57, and NH-655) as well as State Highway 65, ensuring seamless movement and giving Odisha smoother connections with the rest of eastern India. It will also connect with key transport hubs: Khordha railway station, Bhubaneswar airport, a proposed Multi-Modal Logistics Park, and the ports of Puri and Astrang.
The alignment will serve 10 major economic nodes, including special economic zones, food parks, textile and pharmaceutical clusters, and fishing hubs, according to PIB. It is set to link with Khordha railway station, Bhubaneswar airport, and even two ports at Puri and Astrang. In addition, it will touch four social nodes located in aspirational, tribal, and Left-wing extremism-affected districts. A proposed logistics park is on the map as well, pointing to an emphasis on freight movement and trade.
Economic and employment potential
Planning officials have said that the road will bring benefits far beyond Bhubaneswar’s congestion. It cuts through economic zones, food parks, and industrial clusters. These are the kind of places where a faster road can shave off hours in transport time and open new markets. The government also says the project will touch tribal and aspirational districts, which could use better connectivity to attract investment.
Government estimates suggest the bypass will generate around 74.43 lakh person-days of direct employment and 93.04 lakh person-days of indirect work during its construction. Beyond jobs, it is expected to strengthen industrial development and trade links between religious centres such as Puri and industrial towns like Dhenkanal and other economic hubs across Odisha, sparking a wider wave of growth.
Once completed, the Bhubaneswar Bypass is expected to transform connectivity across Odisha, offering faster routes, improved efficiency for freight carriers, and a fresh push for regional growth. For Odisha’s commuters, the outcome will be judged more simply by whether the endless jams on the existing highway finally ease once this giant ring road is complete.
(With inputs from PIB and agencies)