Cabinet Approves ₹1,853 Cr 4-Lane Paramakudi–Ramanathapuram Highway Project in TN

The Union Cabinet has approved the construction of a 4-lane stretch on the Paramakudi–Ramanathapuram section of NH-87 in Tamil Nadu. Spanning 46.7 km, the project will be developed under the Hybrid Annuity Mode (HAM) at a capital cost of ₹1,853 crore.

The upgrade aims to ease traffic congestion and enhance connectivity between key locations such as Madurai, Ramanathapuram, Mandapam, Rameshwaram, and Dhanushkodi. The existing 2-lane highway struggles with heavy traffic, especially through densely populated towns like Paramakudi, Sathirakudi, and Achundanvayal. The new 4-lane highway will significantly improve mobility, road safety, and economic activity in the region.

The project alignment integrates with 5 major National Highways (NH-38, NH-85, NH-36, NH-536, and NH-32) and 3 State Highways (SH-47, SH-29, SH-34), providing seamless connectivity to key economic, social, and logistics nodes across southern Tamil Nadu. Additionally, the upgraded corridor will enhance multi-modal integration by connecting with 2 major Railway Stations (Madurai and Rameshwaram), 1 Airport (Madurai), and 2 minor ports (Pamban and Rameshwaram), thereby facilitating faster movement of goods and passengers across the region.

Upon completion, the Paramakudi-Ramanathapuram section will play a pivotal role in regional economic growth, strengthening connectivity between major religious and economic centers, boosting tourism to Rameshwaram and Dhanushkodi, and opening new avenues for trade and industrial development. The project will also generate approximate 8.4 lakh person-days of direct and 10.45 lakh person-days of indirect employment, and will open new avenues of growth, development and prosperity in surrounding regions.