The scheme aims to improve connectivity and ease congestion, with two bypasses at Gurupura and Moodbidri expected to relieve town traffic. The upgrade should also enhance access to educational institutions, tourist sites and pilgrimage centres such as Dharmasthala and Sringeri and support local economic activity.
Compensation disputes have been identified as the main obstacle, with work stalled at Padavu village for two and a half kilometres and an 830-metre stretch at Kanthavara awaiting forest clearance. Representatives of a landowners action committee said the authority owes Rs 2,860 mn in compensation and that arbitration, appeals and court proceedings have delayed payments for about two years. They cited Central Vigilance Commission guidelines that had envisaged payments of Rs 0.35 mn and noted a guideline value at Padavu of about Rs 1.0117 mn in 2020.
Work on other stretches has progressed, with the Vamanjoor to Baiturli section advancing rapidly and retaining structures and realignment works near temples under way to improve safety. Dense Bituminous Macadam has been completed for 32.65 kilometres of the 45 kilometre corridor and the Moodbidri bypass is in progress. A two and a half kilometre section at Paduva was descoped owing to contractor delay, while minor land issues have slowed realignment at Yedapadavu. Project managers are targeting completion of ongoing works by June ahead of the monsoon and locals have urged timely delivery to reduce landslide risk from unscientific hill cutting.
