The Union Cabinet has approved the construction of a 4-lane highway between Paramakudi and Ramanathapuram in Tamil Nadu at a total capital cost of ₹1,853 crore. The 46.7 km stretch of NH-87 will be built using the Hybrid Annuity Mode (HAM), marking a major push toward improving regional connectivity and boosting economic growth.
Currently, the region relies heavily on a congested 2-lane highway and a mix of State Highways that can no longer handle the rising volume of traffic. The project aims to decongest this vital corridor, especially in key towns like Paramakudi, Sathirakudi, Achundanvayal, and Ramanathapuram.
Once completed, the upgraded corridor will provide seamless integration with five major National Highways (NH-38, NH-85, NH-36, NH-536, NH-32) and three State Highways (SH-47, SH-29, SH-34). It will also improve access to Madurai Airport, Madurai and Rameshwaram railway stations, and the ports of Pamban and Rameswaram.
The Cabinet’s approval is expected to significantly enhance multimodal transport, reduce travel time, and ease goods movement across the Madurai–Rameshwaram–Dhanushkodi corridor. Officials project an estimated daily traffic volume of 12,700 PCUs for FY25.
Importantly, the project is expected to create approximately 8.4 lakh person-days of direct employment and 10.45 lakh person-days indirectly—giving a much-needed boost to job creation in the region.
By upgrading this strategic stretch of NH-87, the government aims to unlock new avenues in tourism, trade, and industrial development—particularly enhancing access to pilgrimage destinations like Rameshwaram and Dhanushkodi.
| Component | Details |
|---|---|
| Total Project Cost | ₹1,853 crore |
| Project Length | 46.7 km |
| Execution Mode | Hybrid Annuity Mode (HAM) |
| Estimated Direct Employment | 8.4 lakh person-days |
| Estimated Indirect Employment | 10.45 lakh person-days |
| Traffic Forecast (FY25) | 12,700 PCUs per day |
Source: Press Information Bureau
