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Cabinet clears ₹1,853 cr 4-lane NH-87 project in Tamil Nadu

Union Cabinet approves ₹1,853 crore 4-lane upgrade of NH-87 in Tamil Nadu to ease traffic, boost connectivity, tourism, and regional development.

News Arena Network - New Delhi - UPDATED: July 1, 2025, 07:09 PM - 2 min read

A representative image.


The building of a four-lane highway along the Paramakudi–Ramanathapuram segment of National Highway 87 (NH-87) in Tamil Nadu has been approved by the Union Cabinet. The project, which will be implemented under the Hybrid Annuity Mode (HAM) and span roughly 46.7 kilometres, is expected to cost 1,853 crore in capital.


The current 2-lane NH-87 and several State Highways are primarily responsible for the road connectivity between Madurai, Paramakudi, Ramanathapuram, Mandapam, Rameshwaram, and Dhanushkodi. These roads are extremely congested, especially in towns with a high population density and busy thoroughfares. The recently approved 4-lane upgrade intends to alleviate these issues by improving road safety, reducing traffic, and meeting the growing mobility needs of expanding urban areas like Paramakudi, Sathirakudi, Achundanvayal, and Ramanathapuram.


The proposed corridor will provide seamless connectivity across important economic, social, and logistical hubs in southern Tamil Nadu by intersecting with three State Highways (SH-47, SH-29, and SH-34) and five major National Highways (NH-38, NH-85, NH-36, NH-536, and NH-32).

 

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The improved segment will greatly increase multi-modal connectivity in addition to enhancing highway infrastructure. It will facilitate more effective transportation of people and goods throughout the area by connecting two major railway stations (Madurai and Rameshwaram), one airport (Madurai) and two smaller ports (Pamban and Rameshwaram).

 

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It is anticipated that the Paramakudi–Ramanathapuram project will significantly impact regional development once it is finished. It will improve travel to well-known locations like Rameshwaram and Dhanushkodi, fortify ties between important religious and commercial hubs, and open up new avenues for business and industry.


Additionally, it is anticipated that the project will create roughly 8.4 lakh direct employment days and 10.45 lakh indirect employment days, greatly boosting local employment and the local economy. The project is a significant step in promoting prosperity, growth, and development throughout southern Tamil Nadu.

 

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