The Union Cabinet on 01 July, 2025 cleared construction of a four-lane section of National Highway-87 between Paramakudi and Ramanathapuram in Tamil Nadu at a cost of Rs 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), combining government support with private investment. The new highway will relieve congestion on the existing two-lane route linking Madurai, Paramakudi, Ramanathapuram, Mandapam, Rameswaram and Dhanushkodi, which currently funnels heavy pilgrim, tourism and freight traffic through densely populated towns.

According to an official release, the project will decongest critical stretches around Paramakudi, Sathirakudi, Achundanvayal and Ramanathapuram, improve road safety standards, and cut travel times to key religious and economic centres on the Gulf of Mannar coast. Construction is expected to generate about 8.4 lakh person-days of direct and 10.45 lakh person-days of indirect employment.