The Union Cabinet has given the green light to the construction of a 4-lane highway between Paramakudi and Ramanathapuram in Tamil Nadu, a key infrastructure project estimated at ₹1853 crore. Spanning 46.7 km, this vital road upgrade along National Highway-87 (NH-87) will be executed under the Hybrid Annuity Mode (HAM).
Currently, traffic along this corridor—including the critical link between Madurai, Paramakudi, Ramanathapuram, Rameshwaram, and Dhanushkodi—is heavily reliant on a congested 2-lane highway. The approved expansion to a 4-lane road aims to alleviate traffic bottlenecks, enhance road safety, and cater to the region’s rapidly growing mobility demands.
The upgraded stretch will directly benefit major towns such as Paramakudi, Sathirakudi, Achundanvayal, and Ramanathapuram, serving as a catalyst for urban development and improved regional access.
Key Features of the Project:
- Length: 46.7 km
- Total Capital Cost: ₹1853.16 crore
- Civil Construction Cost: ₹997.63 crore
- Land Acquisition Cost: ₹340.94 crore
- Mode of Implementation: Hybrid Annuity Mode (HAM)
- Estimated Traffic (FY-25): 12,700 Passenger Car Units (PCU) per day
The highway will integrate seamlessly with five National Highways (NH-38, NH-85, NH-36, NH-536, and NH-32) and three State Highways (SH-47, SH-29, SH-34), creating a robust transportation grid across southern Tamil Nadu. It will also connect with key transport hubs, including the Madurai Airport, Madurai and Rameshwaram railway stations, and minor ports at Pamban and Rameshwaram, significantly improving multimodal logistics.
Beyond connectivity, the project is expected to play a transformative role in boosting regional trade, tourism—especially to religious destinations like Rameshwaram and Dhanushkodi—and economic growth. Additionally, it is projected to generate approximately 8.4 lakh person-days of direct employment and 10.45 lakh person-days of indirect employment during its execution phase.
Once completed, the Paramakudi-Ramanathapuram highway will serve as a strategic artery, linking economic, cultural, and logistical nodes, while fostering inclusive development across southern Tamil Nadu.
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