The Union Cabinet on Tuesday (July 1) approved the construction of a four-lane highway between Paramakudi and Ramanathapuram in Tamil Nadu

The highway that covers 46.7 km distance will be made under the Hybrid Annuity Mode (HAM) at an estimated cost of Rs 1,853 crore.

As of now, the travel commute via the two-lane National Highway 87 (NH-87) and other state highways where they affected by congestion due to high traffic volumes in densely populated towns and stretches.

The new project aims to decongest the existing route and enhance road safety. The four-lane highway will also support the transportation needs of rapidly growing towns such as Paramakudi, Sathirakudi, Achundanvayal, and Ramanathapuram.

The upgraded road will also improve integration with five major National Highways like NH-38, NH-85, NH-36, NH-536, and NH-32, and three State Highways, SH-47, SH-29, and SH-34.

According to the government, this alignment will provide improved access to vital economic, social, and logistics hubs across southern Tamil Nadu.

The corridor is expected to enhance multi-modal transport connectivity, linking with two key railway stations (Madurai and Rameshwaram), Madurai Airport, and two minor ports (Pamban and Rameshwaram). These connections are anticipated to improve the movement of both passengers and freight.

Upon completion, the Paramakudi–Ramanathapuram section will contribute to economic development in the region.

It will strengthen connectivity between important religious destinations like Rameshwaram and Dhanushkodi, promote tourism, and open new opportunities for trade and industrial growth, the government said.

The project is also expected to generate approximately 8.4 lakh person-days of direct employment and 10.45 lakh person-days of indirect employment, further contributing to regional prosperity and job creation, it said.