Three major stretches have been identified in North Andhra. The Vizianagaram-Palakonda road via Rajam covers about 72 km and carries an estimated project cost of Rs 5,670 million (5,670 mn); the Kalingapatnam-Parvathipuram route via Rayagada spans about 108 km with a proposed cost of Rs 6,420 million (6,420 mn); and the Chilakapalem-Rayagada link via Ramabhadrapuram runs about 131 km and accounts for the Rs 11,720 million allocation. Together these initiatives formed part of a wider package estimated at Rs 23,810 million (23,810 mn) under the PPP framework.
Roads and Buildings officials were instructed to prepare detailed project reports and tenders were called for the three stretches. Contracting agencies submitted DPRs for all the routes, but approval was granted only for the Chilakapalem-Rayagada link after officials assessed commercial viability. The decision reflected the inter-state nature of the approved road and its expected traffic profile, while the other two routes were judged not commercially viable for their projected traffic and maintenance requirements. The administration has therefore concentrated initial resources on the inter-state link.
Officials said the tendering process under the Hybrid Annuity Model will follow statutory procurement timelines and that contractors will be selected after technical and financial evaluation. Work schedules will be finalised by the Roads and Buildings department and monitoring mechanisms will be put in place to track progress. The project is expected to improve freight movement and regional accessibility between North Andhra and Odisha.
