This metre gauge branch line between Peralam Junction and Karaikal was approved for construction by French India during December 1895.

[1] Due to persistent demand from various quarters, revival of line gained momentum for surveying the feasibility outside the purview of Railway Budget,[10] which proposed a rough estimate of about ₹110 crore (US$13 million).

[11] Officially, the line was taken up for survey as the announcement came in the 2013–2014 Railway Budget,[12] at an outlay of ₹10 lakh (US$12,000)[13] and at an estimate of about ₹120 crore (US$14 million) for full-fledged activities.

[1] Though owned by French India, the operations were transferred to the then Great South Indian Railway in accordance with agreement signed in 1902.

Cement, fertilisers, tiles, timber, kerosene oil, rice, wheat, grains, pulses and paddy were the main goods involved in traffic.