The 2026-27 state budget of Kerala includes a Rs 10 crore allocation for a feasibility study on a proposed 20-km tunnel road connecting Kattappana in Idukki, Kerala to Theni in Tamil Nadu.

This tunnel is expected to significantly reduce travel time and alleviate traffic bottlenecks along the hill highway, potentially boosting trade and tourism between the two states. This project is part of a broader Rs 1,182.43 crore funding for roads and bridges under the Public Works Department. Of the total, Rs 1,091.15 crore is for state roads and Rs 91.28 crore for National Highways.

The budget also highlights progress in road expansion, with 898 km of state highways upgraded to four lanes and 3,193 km to two lanes. Rs 300.50 crore is allocated for upgrading Major District Roads (MDRs), and Rs 87 crore for state highway overlay works. Road safety has been prioritised with a Rs 23.37 crore allocation, while Rs 25 crore has been set aside for railway overbridges and underpasses, including a Rs 5 crore project at Dharmadom Railway Station.