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.
