Bhubaneswar: The Odisha Cabinet on Monday approved the widening and strengthening of the 25.166-km Rayagada-Kereda Road (MDR-48B) from two lanes to four lanes in Rayagada district, with the project expected to significantly improve connectivity in southern Odisha and strengthen interstate links with Andhra Pradesh.
The Cabinet approved the lowest tender of Rs 126.94 crore submitted by Ashribad Engineering & Constructions Pvt. Ltd. for execution of the project. The estimated cost of the project is Rs 186.19 crore.
The project, to be implemented under the State Plan, is targeted for completion within 24 calendar months.
According to the Works Department, the upgraded corridor is expected to reduce travel time along the 25.166-km stretch by nearly 50 per cent, from around one hour to approximately 30 minutes.
The four-laning of the road is expected to facilitate smoother traffic movement, reduce vehicle operating costs and fuel consumption, improve road safety through modern traffic management measures, and provide greater travel comfort to commuters and freight operators.
The Rayagada-Kereda corridor is an important transport link for the movement of agricultural produce, minerals and industrial goods. It serves several major industries, including JK Paper Mills, IMFA, Vedanta Aluminium and Utkal Alumina. Improved road connectivity is expected to enhance logistics efficiency, lower transportation costs and strengthen the region’s industrial and mining economy.
The project is also expected to improve accessibility for thousands of residents of Rayagada district, where a significant proportion of the population belongs to Scheduled Tribes. Better road infrastructure will facilitate access to healthcare, education, markets, banking facilities and government welfare programmes. It is also likely to create employment opportunities during construction and support long-term livelihood generation.
The upgraded road will provide safer and more convenient access to the ancient shrine of Maa Majhighariani, one of the prominent religious destinations in southern Odisha. Improved connectivity is expected to give a boost to religious tourism and benefit local businesses engaged in hospitality, transportation and other allied services.
The corridor will also strengthen connectivity to the Rayagada Railway Division, an important rail hub in southern Odisha. Better first- and last-mile connectivity between the road corridor and the railway network is expected to facilitate passenger movement, improve freight logistics and promote multimodal transportation.













