The state government of Tamil Nadu has sanctioned the project in 2006, with a funding of ₹85 crore, with a land acquisition of 180 acres.
[3] The four-laned National Highway 544 (NH–544) connecting Salem with Kochi has been strategically planned and constructed along the western periphery of the city through Lakshmi Nagar, Chithode, Gangapuram and Nasiyanur areas to reach Perundurai, is a natural bypass for Erode in the west.
Also, the access to the fast growing urban nodes located in the eastern side of Kaveri river like Pallipalayam, Sankagiri and Tiruchengode is limited with a single Cauvery Bridge.
The Comprehensive Mobility Plan submitted by Erode City Municipal Corporation suggests networking of road to these areas for better transit.
[10][11] Recently it has been announced for widening it to 4 lanes and work in progress for the 13.3 km section of this stretch falling under Erode district.
In the Erode LPA Master Plan for 2041 published durg 2024, it is proposed to extend the ORR from Thindal Chinnamedu to Komarapalayam road (for a length of 15 km) via Semmampalayam, Kongampalayam and RN Pudur.
The Eastern section of Outer Ring Road planned from Kokkarayanpet Parisalthurai to Veppadai via Kadachanallur (11 km) is expected to be implemented as a part of the 4-laning project of Vellakoil-Erode-Sankagiri NH 381A under Bharatmala Pariyojana Scheme.