The Union Cabinet has approved the construction of a four-lane highway on the Paramakudi–Ramanathapuram section in Tamil Nadu. The project covers 46.7 km and will be developed under the Hybrid Annuity Mode (HAM) at a total capital cost of ₹1,853 crore.
At present, road connectivity between Madurai, Paramakudi, Ramanathapuram, Mandapam, Rameshwaram, and Dhanushkodi is handled by the existing two-lane National Highway 87 (NH-87) and various State Highways. These stretches face congestion due to traffic volumes, particularly in populated areas and towns along the route.
To address these challenges, the government will upgrade NH-87 from Paramakudi to Ramanathapuram to a four-lane configuration. The aim is to reduce congestion, improve road safety, and accommodate mobility requirements in towns such as Paramakudi, Sathirakudi, Achundanvayal, and Ramanathapuram.
Connectivity to highways, ports, and transit nodes
The proposed highway alignment will intersect 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). This will provide linkage to economic, transport, and logistics points across southern Tamil Nadu.
The upgraded corridor will also connect to two railway stations (Madurai and Rameshwaram ), one airport (Madurai), and two ports (Pamban and Rameshwaram), facilitating movement of goods and passengers across the region.
According to official estimates, the project is expected to generate approximately 8.4 lakh person-days of direct employment and 10.45 lakh persondays of indirect employment.
Once completed, the Paramakudi–Ramanathapuram highway is expected to strengthen transport access between economic and religious destinations and support local trade, tourism, and industrial activity.