The state budget of Kerala for the 2026-27 fiscal year allocates Rs 10 crore for a feasibility study concerning a proposed 20-km tunnel road that would connect Kattappana in Idukki, Kerala, to Theni in Tamil Nadu. This tunnel is anticipated to greatly decrease travel time and ease traffic congestion along the hill highway, which could enhance trade and tourism between the two states.
This initiative is part of a larger funding package of Rs 1,182.43 crore designated for roads and bridges under the Public Works Department. Out of this total, Rs 1,091.15 crore is earmarked for state roads, while Rs 91.28 crore is allocated for National Highways.
Additionally, the budget underscores advancements in road expansion, with 898 km of state highways upgraded to four lanes and 3,193 km to two lanes. An allocation of Rs 300.50 crore is designated for the enhancement of Major District Roads (MDRs), and Rs 87 crore is set aside for overlay works on state highways.
Road safety has been emphasized with a Rs 23.37 crore allocation, and Rs 25 crore has been reserved for railway overbridges and underpasses, which includes a Rs 5 crore project at Dharmadom Railway Station.



