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NH-87 Upgrade to Boost Tamil Nadu’s Growth

RR Team, July 2, 2025July 2, 2025
In a significant infrastructure push, the Union Cabinet has approved the construction of a 4-lane section of NH-87 from Paramakudi to Ramanathapuram in Tamil Nadu. The 46.7-km stretch will be developed under the Hybrid Annuity Mode (HAM) at a total capital cost of ₹1,853 crore.

Connecting People, Commerce, and Culture

The NH-87 project will ease congestion on the existing 2-lane corridor, which currently faces traffic overload due to rapid urbanization and tourism. Once complete, the highway will offer smooth connectivity between Madurai, Paramakudi, Ramanathapuram, and pilgrimage destinations like Rameshwaram and Dhanushkodi.

Major towns such as Sathirakudi and Achundanvayal will also benefit from reduced travel time and enhanced safety, giving a much-needed boost to local commerce and logistics.

Strategic Highway Integration

The upgraded corridor connects to 5 key National Highways — NH-38, NH-85, NH-36, NH-536, and NH-32 — and 3 State Highways — SH-47, SH-29, and SH-34. This creates a dense and seamless road network linking interior Tamil Nadu to major transport and trade hubs.

It also links with critical infrastructure nodes like:

  • Airports: Madurai International Airport
  • Railway Stations: Madurai and Rameshwaram
  • Ports: Pamban and Rameswaram minor ports

Economic Upliftment and Job Creation

According to government estimates, the project is expected to generate over 8.4 lakh person-days of direct employment and 10.45 lakh person-days of indirect employment. This will bring new income opportunities to local residents and skilled labor in nearby towns.

Furthermore, the project will attract trade, tourism, and investment along the corridor. Religious tourism to  Rameshwaram and Dhanushkodi is expected to see a sharp rise post-completion.

Better Traffic and Road Safety

The NH-87 upgrade will significantly improve road safety by reducing bottlenecks and accommodating higher traffic volumes. Currently, the Annual Average Daily Traffic (AADT) is estimated at over 12,700 Passenger Car Units (PCUs), expected to double in coming years.

Enhanced road geometry and signaling, along with new bypasses, will help prevent accidents and shorten commute times for both passenger and freight vehicles.

Hybrid Annuity Model (HAM) Advantage

Under the HAM model, the government and private partners will share financial and project risks. This promotes transparency, efficiency, and long-term project sustainability. The civil cost stands at ₹997.63 crore, while ₹340.94 crore is allocated for land acquisition and clearances.

Conclusion

This highway project is more than just a road. It’s a pathway to opportunity, resilience, and regional development. With enhanced multimodal connectivity, job creation, and smoother mobility, the NH-87 Paramakudi–Ramanathapuram section sets a strong precedent for India’s infrastructure-led growth.

As Tamil Nadu gears up for this transformation, the nation takes another step closer to faster, safer, and more inclusive development.

News #NH87 #TamilNaduInfrastructure #ParamakudiRamanathapuram #HighwayDevelopment #HAMModel #ModiCabinetDecisions #RameshwaramTourism #RoadConnectivity

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