Union Cabinet approves ₹2,157 crore highway expansion in Tamil Nadu

Four-laning of NH-332A between Marakkanam and Puducherry to ease congestion, boost trade, tourism, and create over 1.8 million person-days of employment in Tamil Nadu

The Union cabinet on Friday approved a 46-kilometre (km) National Highway project in Tamil Nadu between Marakkanam and Puducherry at a cost of Rs 2,157 crore.

 

“Upon completion, the Marakkanam–Puducherry section will play a pivotal role in regional economic growth, strengthening connectivity between major religious and economic centres, boosting tourism to Puducherry, and opening new avenues for trade and industrial development,” the Cabinet Committee on Economic Affairs said in a statement.

 

The project will be developed in Hybrid Annuity Mode — this involves the authority paying 40 per cent of the cost upfront to the developer, with the remaining being paid in annuities.

   

Currently, connectivity between Chennai, Puducherry, Viluppuram and Nagapattinam is dependent on the existing two-lane National Highway 332A (NH-332A) and associated State Highways, which experience significant congestion due to high traffic volumes, especially in densely populated stretches and key towns along the corridor, the cabinet said. 

 

The government expects that the four-laning will decongest the existing corridor, improve safety, and cater to the mobility needs of rapidly growing towns such as Chennai, Puducherry, Viluppuram and Nagapattinam.

 

The upgraded corridor will also enhance multi-modal integration by connecting with two railway stations (Puducherry, Chinnababusamudram), two airports (Chennai, Puducherry), and one minor port (Cuddalore), thereby facilitating faster movement of goods and passengers across the region.

 

The average daily traffic in 2024–25 on the highway was estimated at 17,800 passenger car units.

 

The project will also generate approximately 800,000 person-days of direct and 1 million person-days of indirect employment, and will open new avenues of growth, development and prosperity in surrounding regions, according to the statement.