**Policy Summary: 4-Laning of Paramakudi-Ramanathapuram Section of NH-87 in Tamil Nadu**
On July 1, 2025, the Cabinet Committee on Economic Affairs (CCEA) approved the construction of a 4-lane section of National Highway 87 (NH-87) between Paramakudi and Ramanathapuram in Tamil Nadu. The project encompasses a 46.7 km stretch and will be developed under the Hybrid Annuity Mode (HAM) with a total capital cost of Rs. 1,853 crore.
The primary objective of this project is to alleviate congestion on the existing 2-lane NH-87 and associated State Highways, which currently experience high traffic volumes between Madurai, Paramakudi, Ramanathapuram, Mandapam, Rameshwaram, and Dhanushkodi. The upgrade to a 4-lane configuration aims to improve safety and cater to the increasing mobility demands of growing towns along the corridor, including Paramakudi, Sathirakudi, Achundanvayal, and Ramanathapuram.
The project alignment integrates with five major National Highways (NH38, NH85, NH36, NH536, and NH32) and three State Highways (SH47, SH29, SH34), providing enhanced connectivity to key economic, social, and logistics hubs in southern Tamil Nadu. Furthermore, the upgraded corridor will facilitate multi-modal integration by connecting with the Madurai and Rameshwaram Railway Stations, Madurai Airport, and the Pamban and Rameshwaram minor ports.
Upon completion, the Paramakudi-Ramanathapuram section is expected to stimulate regional economic growth, strengthen connectivity between significant religious and economic centers, boost tourism to Rameshwaram and Dhanushkodi, and create new opportunities for trade and industrial development. The project is also projected to generate approximately 8.4 lakh persondays of direct employment and 10.45 lakh persondays of indirect employment.
Key project details:
* **Project Name:** 4-Lane Paramakudi-Ramanathapuram Section
* **Corridor:** Madurai-Dhanushkodi Corridor (NH-87)
* **Length:** 46.7 km
* **Total Civil Cost:** Rs. 997.63 Cr.
* **Land Acquisition Cost:** Rs. 340.94 Cr.
* **Total Capital Cost:** Rs. 1,853.16 Cr.
* **Mode:** Hybrid Annuity Mode (HAM)
* **Connected National Highways:** NH38, NH85, NH36, NH536, and NH32
* **Connected State Highways:** SH47, SH29, SH34
* **Connected Airports:** Madurai Airport, Ramnad Naval Air Station
* **Connected Railway Stations:** Madurai, Rameshwaram
* **Connected Minor Ports:** Pamban, Rameshwaram
* **Major Cities/Towns Connected:** Madurai, Paramakudi, Ramanathapuram, Rameshwaram
* **Employment Generation:** 8.4 lakh persondays (direct), 10.5 lakh persondays (indirect)
* **Potential Annual Average Daily Traffic (AADT) in FY25:** Estimated at 12,700 Passenger Car Units (PCU)
Key Entities Referenced
Cabinet Committee on Economic Affairs: Approving authority for the construction project.
Paramakudi Ramanathapuram Section: Section of National Highway 87 to be upgraded to 4 lanes.
National Highway 87 NH87: The existing 2-lane highway to be upgraded.
Tamilnadu: The state where the project is located.
Hybrid Annuity Mode HAM: The mode of project development and funding.
Madurai: A major city in Tamil Nadu, connected by the corridor.
Ramanathapuram: A town in Tamil Nadu, connected by the corridor.
Rameshwaram: A town in Tamil Nadu, connected by the corridor.
Cabinet Committee on Economic Affairs (CCEA)
Cabinet approves construction of 4-Lane
Paramakudi - Ramanathapuram Section (NH-87) in
Tamilnadu worth Rs.1853 crore
Posted On: 01 JUL 2025 3:13PM by PIB Delhi
The Union Cabinet has approved construction of 4-Lane Paramakudi - Ramanathapuram Section (46.7 km) in
Tamilnadu. The project will be developed on Hybrid Annuity Mode (HAM) at a total capital cost of Rs.1,853
crore.
Currently, connectivity between Madurai, Paramakudi, Ramanathapuram, Mandapam, Rameshwaram, and
Dhanushkodi is dependent on existing 2-lane National Highway 87 (NH-87) and associated State Highways,
which experience significant congestion due to high traffic volumes, especially in densely populated stretches
and key towns along the corridor. To address these challenges, the project will upgrade approximately 46.7
km of NH-87 from Paramakudi to Ramanathapuram to a 4-lane configuration. This will decongest the
existing corridor, improve safety, and cater to the mobility needs of rapidly growing towns such as
Paramakudi, Sathirakudi, Achundanvayal and Ramanathapuram.
The project alignment integrates with 5 major National Highways (NH-38, NH-85, NH-36, NH-536, and NH-
32) and 3 State Highways (SH-47, SH-29, SH-34), providing seamless connectivity to key economic, social,
and logistics nodes across southern Tamil Nadu. Additionally, the upgraded corridor will enhance multi-
modal integration by connecting with 2 major Railway Stations (Madurai and Rameshwaram), 1 Airport
(Madurai), and 2 minor ports (Pamban and Rameshwaram), thereby facilitating faster movement of goods and
passengers across the region.
Upon completion, the Paramakudi-Ramanathapuram section will play a pivotal role in regional economic
growth, strengthening connectivity between major religious and economic centers, boosting tourism to
Rameshwaram and Dhanushkodi, and opening new avenues for trade and industrial development. The project
will also generate approximate 8.4 lakh person-days of direct and 10.45 lakh person-days of indirect
employment, and will open new avenues of growth, development and prosperity in surrounding regions.
Map of CorridorAppendix - 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
340.94
(Rs. Cr.)
Total Capital Cost (Rs.
1,853.16
Cr.)
Mode Hybrid Annuity Mode (HAM)
National Highways - NH-38, NH-85, NH-36, NH-536, and NH-32
Major Roads Connected
State Highways - SH-47, SH-29, SH-34
Economic / Social / Airports: Madurai, Ramnad (Naval Air Station)
Transport Nodes Railway Stations: Madurai, Ramehswaram
Connected Minor Port: Pamban, Rameswaram
Major Cities / Towns
Madurai, Paramakudi, Ramnathapuram, Ramehswaram
Connected
Employment Generation
8.4 lakh man-days (direct) & 10.5 lakh man-days (indirect)
Potential
Annual Average Daily
Estimated at 12,700 Passenger Car Units (PCU)
Traffic (AADT) in FY-25
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MJPS/BM(Release ID: 2141135)