The Union Cabinet on Tuesday approved the construction of a 4-lane highway between Paramakudi and Ramanathapuram in Tamil Nadu, covering a stretch of 46.7 km along National Highway 87 (NH-87). The project, estimated at ₹1,853 crore, will be developed under the Hybrid Annuity Mode (HAM).
The upgraded highway aims to ease congestion along the busy Madurai–Rameshwaram corridor, which currently relies on a 2-lane NH-87 and adjoining state highways. The new 4-lane section will enhance safety, improve traffic flow, and support the growing mobility needs of rapidly developing towns such as Paramakudi, Sathirakudi, Achundanvayal, and Ramanathapuram.
Strategically designed, the alignment connects with five major National Highways and three State Highways, ensuring seamless travel across southern Tamil Nadu. The corridor also links with key multi-modal transport hubs, including Madurai and Rameshwaram railway stations, Madurai Airport, and the ports of Pamban and Rameshwaram.
Once completed, the project is expected to significantly boost regional trade, tourism—especially to pilgrimage sites like Rameshwaram and Dhanushkodi—and economic development. It is also projected to generate 8.4 lakh person-days of direct employment and 10.45 lakh person-days of indirect employment, contributing to inclusive growth in the region.