The Union Cabinet has approved a Rs.1,853 crore project to upgrade the Paramakudi–Ramanathapuram section of National Highway-87 to a four-lane highway in Tamil Nadu.

The initiative, under the Hybrid Annuity Model (HAM), aims to improve road connectivity to key cities and religious destinations such as Rameswaram, while also supporting economic growth and employment in the region.

Key Points:

• The 46.7 km stretch of NH-87 between Paramakudi and Ramanathapuram will be upgraded to four lanes at a total cost of ?1,853 crore.
• The project will be implemented under the Hybrid Annuity Model (HAM), with ?997 crore allocated for civil works and ?340 crore for land acquisition.
• The upgraded highway will improve traffic flow for over 12,700 passenger car units per day, reducing travel time by up to 40% and increasing travel speed to 80 km/h.
• It will enhance connectivity to major hubs including Madurai, Rameswaram, Mandapam, Dhanushkodi, and multiple pilgrimage and tourism sites.
• The project is expected to generate approximately 8.4 lakh person-days of direct employment and 10.45 lakh person-days of indirect employment during construction.