The Union Cabinet on July 1, 2025, approved the construction of a four-lane section of National Highway-87 between Paramakudi and Ramanathapuram in Tamil Nadu at an estimated cost of ₹1,853 crore. Information and Broadcasting Minister Ashwini Vaishnaw said the 46.7 km greenfield/brownfield upgrade will be executed on the hybrid annuity mode (HAM), blending government support with private-sector investment.
The project aims to alleviate chronic congestion on the existing two-lane stretch that links Madurai, Paramakudi, Ramanathapuram, Mandapam, Rameswaram and Dhanushkodi. Currently, heavy pilgrim, tourism and freight traffic funnels through densely populated towns, leading to frequent bottlenecks and safety concerns. Once completed, the expanded highway is expected to decongest critical points around Paramakudi, Sathirakudi, Achundanvayal and Ramanathapuram, improve road safety standards and significantly cut travel times to key religious and economic centres along the Gulf of Mannar coast.
According to an official release, the construction phase will generate approximately 8.4 lakh person-days of direct employment and 10.45 lakh person-days of indirect employment, boosting the regional labour market. Work on the project is slated to begin in the coming quarter, with phased commissioning planned to meet the growing transportation needs of southern Tamil Nadu. The government expects the highway to be operational by December 2027, subject to weather and land-acquisition timelines.
