Dilip Buildcon L1 Bidder for Rs. 879 Cr. Highway Project in Tamil Nadu
Dilip Buildcon Limited has been declared the Lowest (L1) bidder for four-laning of the Paramakudi to Ramanathapuram section of NH-49 (New NH-87) in Tamil Nadu. This section spans a total length of 46.47 Km.
According to the company’s stock filing dated 27th October 2025, the project is estimated to be executed at a total cost of Rs. 879 crore. Dilip Buildcon will undertake the project on Hybrid Annuity Mode* (HAM) basis. The completion period has been specified as 24 months, while the operation period will extend to 15 years from the date of commissioning.
The project targets to enhance connectivity, improve road safety, and reduce congestion between Paramakudi and Ramanathapuram, as well as other major destinations such as Rameswaram and Dhanushkodi. The Union Cabinet had granted its approval for this four-laning project in July 2025. This decision was taken to de-congest the existing 2-lane portion of New NH-87, and enhance connectivity and mobility in and around towns such as Paramakudi, Sathirakudi, Achundanvayal and Ramanathapuram. Moreover, this four-laning project will facilitate movement of passengers and goods, since it will offer connectivity to Madurai and Rameswaram railway stations, Madurai airport, and Pamban and Rameswaram ports.
Apart from this, the aforementioned four-laning project is expected to generate 8.4 lakh person-days of direct and 10.45 lakh person-days of indirect employment.
*Hybrid Annuity Model (HAM) refers to a mode of Public-Private-Partnership (PPP) wherein the government and the private player share the project expenses in a 40:60 ratio respectively. After the private player develops the project, it is handed over to the government. The government pays a fixed annuity to the private player for a certain amount of time as defined in the contract.
