Cabinet clears airport project at Kota-Bundi, Ring Road in Odisha

The Union Cabinet on Tuesday cleared a proposal to set up a new airport at Kota-Bundi in Rajasthan at an estimated cost of Rs 1,507 crore. Briefing the media after the Cabinet meeting in New Delhi, Information & Broadcasting Minister Ashwini Vaishnaw said the greenfield airport project will be funded by the Airports Authority of India (AAI). For the airport, 1,089 acres of land will be provided free of cost by the Rajasthan government and the airport will have a capacity to handle 2 million passengers per annum, the minister said.

VIDEO | Delhi: Addressing media after the Cabinet meeting, Union Minister Ashwini Vaishnaw (@AshwiniVaishnaw) says, “The Cabinet has approved the development of a greenfield airport at Kota-Bundi (Rajasthan) at an estimated cost of Rs 1,507 crore. Secondly, approval has been… pic.twitter.com/xmyfELFb0K

— Press Trust of India (@PTI_News) August 19, 2025

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi approved the construction of a 6-Lane Access-Controlled Capital Region Ring Road (Bhubaneswar Bypass) in Odisha at a total capital cost of Rs 8,307.74 crore. The 110.875 km project will be developed on Hybrid Annuity Mode (HAM). At present, the Rameshwar–Tangi stretch of the existing National Highway faces severe congestion due to heavy traffic moving through urban centres like Khordha, Bhubaneswar, and Cuttack. The new Greenfield Ring Road aims to divert heavy commercial vehicles away from these cities, thereby improving freight efficiency, reducing logistics costs, and promoting socio-economic development in Odisha and neighbouring eastern states. With an estimated traffic volume of 28,282 Passenger Car Units (PCU) per day (FY25), the Bhubaneswar bypass will serve as a vital corridor along the Kolkata–Chennai economic route, opening new avenues for growth, development, and prosperity in Odisha.