News Brief
Cabinet Committee on Economic Affairs (CCEA)
The Union Cabinet has cleared the construction of a four-lane stretch between Paramakudi and Ramanathapuram, spanning 46.7 km along National Highway 87 (NH-87).
The project, to be developed under the Hybrid Annuity Mode (HAM), will be constructed at a total capital cost of Rs 1,853 crore.
At present, connectivity between key southern towns including Madurai, Paramakudi, Ramanathapuram, Mandapam, Rameshwaram, and Dhanushkodi is heavily reliant on the existing two-lane NH-87 and associated state highways, which frequently witness severe congestion.
The proposed upgrade aims to alleviate bottlenecks, enhance road safety, and address the growing mobility demands of expanding urban centres such as Paramakudi, Sathirakudi, Achundanvayal, and Ramanathapuram.
In addition, the enhanced corridor will facilitate multi-modal transport by linking two significant railway stations (Madurai and Rameshwaram), one airport (Madurai), and two minor ports (Pamban and Rameshwaram), enabling swifter movement of goods and passengers.
Upon completion, the Paramakudi-Ramanathapuram section is poised to “play a pivotal role in regional economic growth, strengthening connectivity between major religious and economic centres, boosting tourism to Rameshwaram and Dhanushkodi, and opening new avenues for trade and industrial development,” a government statement read.
The project is expected to generate approximately 8.4 lakh person-days of direct employment and 10.45 lakh person-days of indirect jobs, fostering growth and prosperity in the surrounding regions.