In a major infrastructure push for Tamil Nadu, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the construction of a 4-lane, 46-km stretch from Marakkanam to Puducherry on National Highway (NH) 332A. The project will be executed under the Hybrid Annuity Mode (HAM) at a total capital cost of ₹2,157 crore.
The move is set to transform the existing congested 2-lane corridor into a modern 4-lane highway, addressing pressing traffic bottlenecks and enhancing connectivity for rapidly developing urban and semi-urban centers, including Chennai, Puducherry, Viluppuram, and Nagapattinam. The upgrade is expected to significantly improve road safety, reduce travel time, and facilitate smoother traffic movement along one of the region’s vital routes.
Strategically located along the Coromandel Coast, the upgraded corridor will seamlessly integrate with multiple major and state highways—NH-32, NH-332, SH-136, and SH-203—ensuring better linkages to regional transport networks. Additionally, it will connect with two railway stations, two airports, and one minor port, thereby bolstering economic, social, and logistics integration in the region.
Officials have emphasized that this project is more than just a road expansion; it is a critical enabler for trade, tourism, and industrial growth. By improving access to Chennai and Puducherry—two key economic and cultural hubs—the corridor will help attract investments, encourage industrial development, and promote tourism along the East Coast.
The Hybrid Annuity Mode (HAM), under which the project will be implemented, is designed to balance public and private investment. Under HAM, the government will bear a portion of the project cost during the construction phase, while the private concessionaire will finance the remainder and receive semi-annual payments from the government over a fixed period. This model ensures better risk sharing and faster execution while maintaining fiscal discipline.
The project is expected to have far-reaching socio-economic benefits. Improved connectivity will enhance access to education, healthcare, and employment opportunities for residents of smaller towns and villages along the route. It will also provide a safer and faster route for the movement of goods, including perishable agricultural products, thus benefiting farmers and traders.
From a logistics standpoint, the new 4-lane highway will reduce transportation costs and improve efficiency for freight movement between Tamil Nadu’s industrial zones and its ports. With the added connectivity to airports and railway hubs, the corridor is poised to become a key component of the state’s multimodal transport network.
Environmental and safety measures are also expected to be integrated into the project design, including proper drainage systems, pedestrian-friendly infrastructure, and road safety features to reduce accidents and protect vulnerable road users.
With construction likely to begin soon after the tendering process, the Marakkanam–Puducherry 4-lane upgrade represents a significant step towards modernizing Tamil Nadu’s highway infrastructure, strengthening its economic backbone, and improving the quality of life for communities along the route.




