Cabinet Approves ₹1,853 Cr 4-Lane Highway Project in Tamil Nadu’s NH-87 Corridor

In a major infrastructure push aimed at improving regional connectivity and stimulating economic growth in southern Tamil Nadu, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the construction of a 4-lane highway from Paramakudi to Ramanathapuram under National Highway-87 (NH-87). The 46.7-km stretch will be developed at a total capital cost of ₹1,853.16 crore using the Hybrid Annuity Mode (HAM) of implementation.

The decision comes as a part of the government’s broader mission to modernize transport corridors, reduce congestion, and enable faster, safer travel for both freight and passengers, particularly in high-traffic and religiously significant regions such as Rameshwaram and Dhanushkodi.

Bridging Congestion Gaps: Why the Project Matters

At present, connectivity between Madurai, Paramakudi, Ramanathapuram, Mandapam, Rameshwaram, and Dhanushkodi relies heavily on a two-lane NH-87 and a network of state highways. These roads face severe congestion, particularly in densely populated towns and commercial hubs. Traffic bottlenecks not only affect mobility but also pose significant safety risks and logistical inefficiencies.

The upgrade of the Paramakudi–Ramanathapuram section into a four-lane highway seeks to:

• Decongest existing roads

• Improve traffic safety

• Reduce travel time

• Support growing industrial and tourism activity

• Cater to increasing urbanization in towns like Sathirakudi, Achundanvayal, and Ramanathapuram

Strategic Connectivity Across South Tamil Nadu

The project is designed with a multimodal integration framework, enabling seamless connections across air, rail, road, and sea transport modes. The upgraded corridor will link with:

National Highways:

• NH-38, NH-85, NH-36, NH-536, and NH-32

State Highways:

• SH-47, SH-29, and SH-34

Transport Nodes:

• Airports: Madurai Airport, and Naval Air Station at Ramnad

• Railway Stations: Madurai and Rameshwaram

• Minor Ports: Pamban and Rameshwaram

This comprehensive integration will vastly enhance regional logistics, improve passenger mobility, and reduce dependency on narrow, outdated routes.

Project Overview at a Glance

Employment and Economic Multiplier Effects

The project is expected to have significant employment generation effects, creating:

• 8.4 lakh person-days of direct employment

• 10.45 lakh person-days of indirect employment

In addition to job creation, the upgraded highway will spur the development of local economies, particularly in the logistics, transport, trade, and tourism sectors.

Boost to Religious and Cultural Tourism

The route lies on the pilgrimage corridor to Rameshwaram and Dhanushkodi, two of the most revered spiritual destinations in India. Improved road connectivity is expected to:

• Facilitate higher tourist inflow

• Improve accessibility for pilgrims from across India

• Enhance infrastructure for hospitality and services sectors

The improved corridor will also support cultural and heritage circuits linked to Mahayogi Guru Gorakhnath traditions, marine conservation zones, and historical landmarks in Pamban.

Supporting Industry and Trade

The improved infrastructure will support industrial growth, reduce freight costs, and strengthen trade routes connecting southern Tamil Nadu to ports, especially Rameshwaram and Pamban. The corridor will also serve as a backbone for fisheries, agro-industries, and textile clusters emerging in and around Paramakudi and Ramanathapuram.

A Vision for Sustainable Connectivity

Developed under the Hybrid Annuity Mode (HAM), the project ensures cost-efficiency, risk-sharing between government and private players, and long-term sustainability. The project is aligned with the Bharatmala Pariyojana, India’s flagship initiative to create next-generation highway networks.

With construction set to commence soon, the 4-lane Paramakudi–Ramanathapuram project is poised to usher in a new era of connectivity, commerce, and cultural integration in Tamil Nadu’s southern belt.