Questions Raised Over ₹949-Crore Bhubaneswar Flyover Project as Tender Value Drops to ₹579 Crore

The Odisha Government’s ambitious Jaydev Vihar–Nandankanan Road Development Project has come under scrutiny after a significant difference emerged between the Cabinet-approved project cost and the value of the winning tender, raising questions over cost estimation, transparency and the use of public funds.

The state Cabinet had approved an estimated cost of ₹949.35 crore on July 1 for the construction of flyovers at major intersections and the widening of the 9.5-km corridor from Kalinga Stadium Gate No. 4 to Raghunathpur Bridge. The project proposes an eight-lane main carriageway along with service roads to improve traffic flow in Bhubaneswar.

Tender Awarded at ₹579 Crore

According to the tender outcome, the lowest bidder has been awarded the project for around ₹579 crore (excluding GST). This leaves a difference of more than ₹370 crore before GST, compared with the Cabinet-approved estimate, prompting questions over how the original Detailed Project Report (DPR) and cost estimates were prepared.

Critics argue that if the project can be executed at the lower bid amount, the basis for the higher Cabinet estimate deserves public explanation.

Questions Over DPR and Project Cost

The project has triggered debate over whether the consultant responsible for preparing the DPR overestimated the project cost. Questions have also been raised about whether expenses related to land acquisition, utility shifting and rehabilitation are included in the approved estimate or will be financed separately.

Observers have called for greater transparency regarding the methodology used to calculate the project’s overall cost.

Concerns Over Need and Social Impact

The project has also sparked debate over whether such a large infrastructure investment is necessary for Bhubaneswar’s current traffic requirements. Some urban planners argue that conventional flyovers and junction improvements may have addressed congestion at a lower cost.

Concerns have also been raised over the impact of the road widening on roadside businesses. Local estimates suggest that thousands of small and medium traders could face displacement if the project proceeds. Questions remain over rehabilitation, compensation and alternative livelihood arrangements.

Environmental groups have also expressed concern that the project could require the felling of a significant number of trees, subject to forest and environmental clearances.

Call for Greater Transparency

The debate has also revived questions over expenditure on DPR preparation for infrastructure projects that have not been implemented. Critics claim that several DPRs prepared over the years remain pending despite significant consultancy expenditure.

While the government maintains that the project will improve traffic capacity and support Bhubaneswar’s future growth, critics have urged the state to disclose the complete DPR, cost calculations, traffic studies and rehabilitation plan to ensure transparency and public confidence before construction begins.