The Union Cabinet, chaired by Prime Minister Narendra Modi, has given the nod for a ₹1,853 crore highway upgrade on NH‑87, transforming the existing 2-lane Paramakudi–Ramanathapuram stretch (46.7 km) into a robust 4-lane national highway under the Hybrid Annuity Mode (HAM) This multi‑crore initiative is led by the National Highways Authority of India (NHAI) and aims to boost connectivity across southern Tamil Nadu .
The primary objective is to widen and modernize NH‑87, significantly enhancing mobility for passenger and freight traffic between Paramakudi and Ramanathapuram .
The upgraded corridor will intersect with five major National Highways—NH‑38, NH‑85, NH‑36, NH‑536, and NH‑32—as well as three State Highways (SH‑47, SH‑29, and SH‑34) It will also improve access to Madurai and Rameshwaram railway stations, Madurai Airport, and the ports at Pamban and Rameshwaram
This highway widening is poised to catalyze regional tourism by improving access to religious and heritage hubs like Mandapam, Rameshwaram, and Dhanushkodi. Additionally, the project will streamline the transportation of goods across southern Tamil Nadu, fostering industrial growth
The project is expected to create approximately 8.4 lakh person-days of direct employment and 10.45 lakh person-days of indirect jobs Such a thrust in infrastructure investment will spur ancillary industries and uplift the local economy.
Budget breakdown shows ₹997 crore allocated to construction and ₹340 crore earmarked for land acquisition, accounting for the total investment of ₹1,853 crore
Upgrading NH‑87 to four lanes will drastically reduce road congestion and travel time for commuters and transporters alike, facilitating safer, smoother journeys—especially vital for general, police, railway, and defence personnel navigating southern Tamil Nadu.
As part of India’s broader infrastructure mission, this project mirrors national efforts like the Delhi–Mumbai Expressway and the Bengaluru–Chennai corridor reflecting the government’s emphasis on reducing regional disparities and strengthening economic corridors.
For government exam candidates (IBPS, SSC, UPSC), this development highlights themes in public infrastructure, hybrid annuity finance models, economic upliftment, employment generation, and federal-state coordination in highways policy.
Q1. What is the Paramakudi–Ramanathapuram highway project?
It is a ₹1,853 crore project approved by the Union Cabinet to upgrade NH‑87 from a 2-lane to a 4-lane highway in Tamil Nadu, spanning 46.7 km.
Q2. What is the execution model used for this highway project?
The project will be developed under the Hybrid Annuity Mode (HAM), which combines public and private investment models.
Q3. How will this project benefit the region?
It will enhance regional connectivity, promote tourism, facilitate smoother goods transport, and generate nearly 1.84 million person-days of employment.
Q4. Which major locations and infrastructure will be connected by this project?
It links Paramakudi and Ramanathapuram and improves access to Madurai Airport, Rameshwaram and Pamban Ports, Madurai and Rameshwaram railway stations, and intersects 5 National Highways and 3 State Highways.
Q5. Why is this important for competitive exam aspirants?
This project is relevant for questions under Indian Infrastructure, Government Schemes, Employment Generation, and Transport Policies in exams like UPSC, SSC, IBPS, Railway, TET, and Defence.
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