The Chennai Metropolitan Development Authority (CMDA) on Thursday awarded a contract to the Delhi-based Rudrabhishek Enterprises to prepare a blueprint for the development of a 1 km stretch on either side of the 62 km Outer Ring Road (ORR).

The Authority envisions the outer ring road as a high-growth corridor with sustainable levels of density. It is expected to attract business and industrial activities in and around Chennai due to improved infrastructure and a higher floor space index.

The project strives to create a more connected, affordable, and vibrant city by reducing transportation costs, attracting business investments, and developing quality public spaces. This corridor has an area of 125 sq km and will be developed on the concept of Transit Oriented Development with multiple transportation facilities, says a release.

Pradeep Misra, CMD, REPL, in the release, said that Chennai stands at a critical juncture with escalating traffic issues and strained infrastructure due to rapid urban growth. Upgrading existing systems is imperative to address these challenges. The city’s traffic congestion severely impacts lives and impedes economic progress. The Outer Ring Road project signifies a crucial step toward relieving these concerns.

On Friday, the company’s share price was trading at ₹216.00 at 10am on the NSE, up 0.49 per cent.