The Cabinet Committee on Economic Affairs has approved the construction of a four-lane highway between Marakkanam and Puducherry in Tamil Nadu. The 46-kilometre stretch on National Highway 332A will be developed under the Hybrid Annuity Mode (HAM) at an estimated capital cost of Rs 21.57 billion.
Part of the Chennai–Puducherry–Nagapattinam–Tuticorin–Kanyakumari Economic Corridor along the East Coast Road, the project aims to decongest the existing two-lane NH-332A and state highways, which currently face heavy traffic, particularly in densely populated areas and key towns.
The upgraded four-lane corridor will strengthen connectivity between Chennai, Puducherry, Viluppuram, and Nagapattinam, reducing travel time and improving road safety for both passengers and freight. It will link two major national highways (NH-32 and NH-332) and two state highways (SH-136 and SH-203), ensuring seamless access to important economic and social hubs. The route will also integrate with multi-modal transport networks, connecting to Chennai and Puducherry airports, Puducherry and Chinnababusamudram railway stations, and Cuddalore minor port.
A key component of the project is a 34.7 km greenfield, access-controlled Puducherry bypass, designed to enable smoother movement of goods and passengers. The corridor is expected to enhance regional economic activity and improve access to major religious, industrial, and tourism destinations, including Puducherry and nearby coastal towns.
The initiative is projected to generate significant employment, with around 8 million person-days of direct jobs and 10 million person-days of indirect employment. It will also connect to strategic economic nodes such as a mega food park, a pharma cluster, a fishing cluster, Arulmigu Manakula Temple, and Paradise Beach.
The civil construction cost is estimated at Rs 11.18 billion, with land acquisition and related expenses totalling Rs 4.42 billion. For FY 2025, the Annual Average Daily Traffic (AADT) is projected at around 17,800 Passenger Car Units (PCUs).