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.

Odisha Faces ₹262-Crore Liability in Road Project Dispute; Questions Raised Over Officials’ Handling of Contract

OdishaConnect — Sun, 28 Jun 2026 14:43:55 +0000

The Odisha government’s Works Department has come under scrutiny after a Commercial Court in Bhubaneswar directed the state to pay nearly ₹262 crore, including interest, to a contractor in connection with a long-pending road construction dispute.

The court, in its order dated June 20, directed the state government to clear the dues by July 3. It also reportedly issued notices for the attachment of the department’s bank accounts in case of non-compliance.

The order has sparked fresh debate over the functioning of the Works Department and the handling of major infrastructure contracts.

What Is the Case About?

The dispute relates to the construction of a two-lane road from Kanika Railway Siding to Baramati Road in Sundargarh district. The project was awarded in 2016 to GR Infra Projects under the Engineering, Procurement and Construction (EPC) model.

The project, valued at approximately ₹199.36 crore, was scheduled for completion by 2019.

According to available information, the contractor completed the project through another executing agency, and the road has since become operational. However, the company allegedly did not receive the full approved payment, leading it to approach the court for relief.

Following the legal proceedings, the Commercial Court ruled in favour of the contractor and directed the state government to release the pending amount along with applicable interest.

Why Is the State Facing a ₹262-Crore Liability?

The court’s order has raised a key question: how did a project originally valued at around ₹199 crore result in a liability of nearly ₹262 crore?

The additional amount reportedly includes accumulated interest arising from the prolonged dispute and delayed settlement of the contractor’s claims.

The development has also triggered concerns about the financial burden on the state exchequer and whether such liabilities could have been avoided through timely administrative action.

Allegations of Administrative Lapses

The case has also led to allegations regarding the conduct of certain officials who were associated with the project during its execution.

According to allegations cited in connection with the dispute, the then Superintending Engineer Narayan Patel and DPI (Roads) Manoranjan Mishra allegedly failed to resolve issues raised by the contractor in a timely manner. It has also been alleged that repeated delays in addressing contractual disputes contributed to prolonged litigation.

These allegations have not been independently verified, and no official finding of personal wrongdoing against the officers has been cited in the court order referred to in the report.

Questions Over Accountability

The court’s direction has reignited debate over accountability within government departments.

Critics argue that if delays or administrative lapses by individual officials contributed to the financial liability, responsibility should be fixed accordingly rather than allowing the burden to fall entirely on the public exchequer.

The case has also raised broader concerns about contract management, dispute resolution and administrative oversight in public infrastructure projects.

Government Yet to Respond

The Odisha government has not yet issued a detailed public response on the court’s order or clarified whether it will comply with the payment directive, challenge the verdict before a higher court, or initiate any departmental inquiry into the matter.

The case is expected to remain under close watch as the July 3 deadline approaches, with significant financial and administrative implications for the Works Department.

The post Odisha Faces ₹262-Crore Liability in Road Project Dispute; Questions Raised Over Officials’ Handling of Contract appeared first on Odisha Connect.

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