New Delhi, July 1, 2025 — In a landmark infrastructure decision, the Union Cabinet has approved the construction of a 4-lane highway between Paramakudi and Ramanathapuram, under the Madurai–Dhanushkodi Corridor (NH-87), at a total capital cost of ₹1,853.16 crore. The 46.7 km stretch will be developed using the Hybrid Annuity Mode (HAM) and is set to significantly improve road connectivity across key districts of southern Tamil Nadu.
Decongesting a Critical Corridor
At present, National Highway 87 (NH-87) serves as the primary arterial road connecting important cities such as Madurai, Paramakudi, Ramanathapuram, Mandapam, Rameshwaram, and Dhanushkodi. However, the existing 2-lane route is heavily congested due to rising traffic volumes — especially through dense habitations and rapidly expanding towns like Sathirakudi and Achundanvayal.
The upgraded 4-lane section from Paramakudi to Ramanathapuram will act as a vital decongestion measure, greatly improving travel efficiency, reducing accident risk, and ensuring safe, faster mobility for both passengers and freight.
Strategic Multimodal Integration
The proposed highway will seamlessly integrate with 5 major National Highways — NH-38, NH-85, NH-36, NH-536, and NH-32, and 3 State Highways — SH-47, SH-29, and SH-34. This integrated network will boost multimodal connectivity with key economic and transport hubs, such as:
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Airports: Madurai Airport
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Railway Stations: Madurai and Rameshwaram
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Minor Ports: Pamban and Rameshwaram
The improved corridor is expected to facilitate smoother movement of goods and pilgrims, especially to the religious destinations of Rameshwaram and Dhanushkodi, while also enabling faster access to regional markets and logistic hubs.
Driving Economic and Regional Development
The ₹1,853 crore investment — including ₹997.63 crore in civil costs and ₹340.94 crore in land acquisition — will be a catalyst for regional economic development, tourism growth, and local industry expansion.
With an estimated daily traffic of 12,700 Passenger Car Units (PCU) in FY-25, the new highway will relieve logistical bottlenecks and contribute to:
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Improved tourism access to spiritual and heritage destinations like Rameshwaram
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Better trade routes for agricultural and marine products in coastal districts
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Stronger economic linkages between urban and rural centers across the corridor
Employment and Social Impact
The project will also have a strong employment generation potential, creating:
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8.4 lakh man-days of direct employment
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10.5 lakh man-days of indirect employment
Additionally, it will improve socio-economic indicators in connected towns such as Madurai, Paramakudi, Ramanathapuram, Sathirakudi, and Achundanvayal, encouraging local entrepreneurship, services, and skill development.
Conclusion
The Cabinet’s approval for the Paramakudi–Ramanathapuram 4-lane highway under NH-87 marks a major push toward sustainable, inclusive, and high-impact infrastructure in southern Tamil Nadu. As a transformative project, it is poised to strengthen mobility, boost regional prosperity, and support India’s vision for robust multimodal connectivity and economic integration.
For more details, check press release on PIB website.
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