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Cabinet Approves ₹1,853 Cr Four-Lane Highway From Paramakudi To Ramanathapuram On NH-87

The Union Cabinet has approved the ₹1,853.16 crore upgrade of NH-87 from Paramakudi to Ramanathapuram into a four-lane highway. The 46.7 km project aims to reduce traffic congestion, boost tourism to Rameshwaram and Dhanushkodi, and generate over 18 lakh person-days of employment. The corridor will link multiple highways, rail, air, and port services.

Published By: Lavanya R
Last Updated: July 1, 2025 22:29:53 IST

The Union Cabinet has approved a long-anticipated scheme widening a vital portion of National Highway 87 (NH-87) as one of their major infrastructure initiatives. The ₹1,853.16 crore scheme will widen the 46.7 km sector between Paramakudi and Ramanathapuram into a four-lane road, significantly improving road connectivity in southern Tamil Nadu. 

The announcement was made Tuesday, July 1st, part of the Centre’s ongoing effort to increase road infrastructure and improve the region’s economic conditions.

Connects Key Cities and Relieves Congestion

Travelers making their journey through Madurai, Paramakudi, Ramanathapuram, Mandapam, Rameshwaram and Dhanushkodi today have to contend with a congested two lane NH-87 or state highways that is often congested and unsafe, and at times disastrous.

The new 4-lane upgrade is long-overdue by local and regional stakeholders and it will alleviate congestion, lessen journey times, and safer road safety conditions. The Ministry of Road Transport and Highways is hopeful this project will take advantage of new connections and create tourism for both religious (Rameshwaram) and coastal (Dhanushkodi) destinations.

Integrated Regional Connectivity: Road, Rail, Port & Air:

Based on the official statement, the upgraded highway will interlink five National Highways – NH-38, NH-85, NH-36, NH-536, and NH-32, and three State Highways – SH-47, SH-29, and SH-34.

Apart from this, the new corridor will offer multi-modal connectivity to:

  • Madurai and Rameshwaram railway stations
  • Madurai Airport
  • Minor ports at Pamban and Rameshwaram

This will render travel and trade much more efficient, promoting industrial growth and logistics networks in the area.

Employment Generation & Development Model

The work will be carried out under the Hybrid Annuity Mode (HAM) a model for public-private partnership as indicated by Union Minister Ashwini Vaishnaw in the Cabinet briefing.

The widening of the highway is also going to generate huge employment:

  • 8.4 lakh person-days of direct employment
  • 10.45 lakh person-days of indirect employment

This is a labour-intensive model that is expected to bring economic benefits to the local labor force and populations along the stretch.

Boost to Southern Tamil Nadu Tourism and Trade

Besides infrastructure, the project has also been envisaged to lead regional tourism for heritage and religious pilgrimage sites. The promise of easy access to Rameshwaram, Dhanushkodi, and surrounding coastal areas, means that not only will you expect growth in the tourist numbers, but also new opportunities for hospitality, retail and marine trade. 

According to government officials, “This project will improve regional connectivity, allowing growth, development and prosperity in the region.”

The foundation for this upgrade was formed in November 2021, when NHAI solicited suggestions to undertake the conversion of the existing two-lane highway into a four-lane highway based on demands from local commuters and commercial organizations.

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