Good News for Tamilnadu State! Cabinet Approves ₹1,853 Crore Four-Lane Upgrade of NH-87 Between Paramakudi-Ramanathapuram Section in Tamilnadu
Good for the Tamil Nadu state. Union Cabinet has approved the construction of a four-lane highway along the Paramakudi–Ramanathapuram section of National Highway 87 (NH-87). According to NHAI, the upgradation project will upgrade approximately 46.7 km of NH-87 from Paramakudi to Ramanathapuram to a 4-lane configuration. It will be developed under the Hybrid Annuity Mode (HAM) at a total capital cost of ₹1,853.16 crore.
Appendix – I: Project Details
| Feature | Details |
| Project Name | 4-Lane Paramakudi – Ramanathapuram Section |
| Corridor | Madurai – Dhanushkodi Corridor (NH-87) |
| Length (km) | 46.7 |
| Total Civil Cost (Rs. Cr.) | 997.63 |
| Land Acquisition Cost (Rs. Cr.) | 340.94 |
| Total Capital Cost (Rs. Cr.) | 1,853.16 |
| Mode | Hybrid Annuity Mode (HAM) |
| Major Roads Connected | National Highways – NH-38, NH-85, NH-36, NH-536, and NH-32State Highways – SH-47, SH-29, SH-34 |
| Economic / Social / Transport Nodes Connected | Airports: Madurai, Ramnad (Naval Air Station)Railway Stations: Madurai, RamehswaramMinor Port: Pamban, Rameswaram |
| Major Cities / Towns Connected | Madurai, Paramakudi, Ramnathapuram, Ramehswaram |
| Employment Generation Potential | 8.4 lakh man-days (direct) & 10.5 lakh man-days (indirect) |
| Annual Average Daily Traffic (AADT) in FY-25 | Estimated at 12,700 Passenger Car Units (PCU) |
Information source: PIB
At present, traffic between Madurai, Paramakudi, Ramanathapuram, Mandapam, Rameshwaram and Dhanushkodi suffers from heavy congestion due to its two-lane structure. The proposed expansion will ease traffic flow, improve safety for vehicles, and cater to the mobility needs of rapidly growing towns such as Paramakudi, Sathirakudi, Achundanvayal and Ramanathapuram.
The upgraded highway corridor will integrate with five major national highways, NH-38, NH-85, NH-36, NH-536, and NH-32 and three state highways SH-47, SH-29, and SH-34, which increases connectivity across southern Tamil Nadu. The project also links key multi-modal nodes, including Madurai Airport, Madurai and Rameshwaram Railway Stations, and the minor ports at Pamban and Rameshwaram.
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This development project is expected to generate around 8.4 lakh direct and 10.45 lakh indirect person-days of employment. It also aims to boost regional economic growth, tourism to Rameshwaram and Dhanushkodi, and increase industrial development due to multi-lane highways. Annual Average Daily Traffic (AADT) was estimated at 12,700 Passenger Car Units (PCU)in FY-25.
