NHAI Floats ₹1,042 Cr Tender to Four-Lane Paramakudi–Ramanathapuram Highway in Tamil Nadu

The National Highways Authority of India (NHAI) invited bids for the development of a critical road infrastructure in Tamil Nadu—four-laning a 46.665 km stretch between Paramakudi and Ramanathapuram on National Highway 49 (New NH-87).

The work from km 80.360 to km 127.025 will be undertaken under the Hybrid Annuity Model (HAM), which will include both government and private money. NHAI has estimated the total cost at ₹1,042.83 crore. Contractors would be required to complete the project within 24 months of appointment.

Strategically significant from the aspect of supporting connectivity of the region in southern Tamil Nadu, the upgraded road section will improve travel efficiency, road safety, and economic mobility in the Ramanathapuram district and surrounding regions.

The four-laning is a part of the Centre’s initiative to upgrade highway infrastructure under Bharatmala and ancillary schemes. With this development, the road will also further link with the coastal strip, facilitate travel to Rameswaram, and promote development in this largely agrarian and tourism-driven economy.

Potential applicants from the notice of application must have their application submitted prior to July 24, 2025. The works involved include the construction, expansion, and reinforcement of the existing carriageway, and works associated with them including culverts, minor bridges, road signs, and safety devices.

The Hybrid Annuity Model involves financing 40% of the cost during the construction phase by the government and the remaining 60% by the developer and is repaid through annuity payments over a period. The model has been extensively employed by NHAI to reduce financial risk and reduce execution timelines.

The project will generate employment during construction and long-term economic benefits through increased connectivity and logistics.

With this tender, NHAI reaffirms its vision of developing high-quality highway infrastructure in Tamil Nadu’s center.