Union Cabinet Approves ₹1,853 Crore Four-Lane Highway Project in Tamil Nadu

In a pivotal infrastructure initiative taking shape to enhance local connectivity in Tamil Nadu, the Union Cabinet approved funding for a four-lane road between Paramakudi and Ramanathapuram, on July 1, 2025. The project, which is part of National Highway-87 (NH-87), will be completed under the Hybrid Annuity Mode (HAM) with a project cost of ₹1,853 crore. This will benefit traffic congestion and safety and support the socio-economic development of the region.

The project made news when Union Minister Ashwini Vaishnaw announced the Cabinet approved to upgrade from two lanes the 46.7 km Paramakudi – Ramanathapuram of NH-87. This comes at a time when traffic volumes are rising, creating demands on upgrading infrastructure for tourism, trade, and local-level industries. The development aligns with India’s broader effort to upgrade infrastructure and generate job opportunities in semi-urban and rural areas of the country.

Project Key Highlights

• Total Project Cost: ₹1,853 crore

• Project Execution Mode: Hybrid Annuity Mode (HAM)

• The length of the road: 46.7 km (Paramakudi to Ramanathapuram)

• The National Highway is NH-87

Background & Need for the Project

At the moment, connectivity relies on the existing two-lanes of NH-87 and State Highways but, they are heavily congested at present due to:

• High daily travel volume of all traffic,

• Clustered dense population,

• Daily tourist traffic to Rameshwaram and Dhanushkodi

• Low road safety measures

• The existing infrastructure results in delays and reduces the safety of commuter road users which can restrict local mobility, and affect local economic activity.