THIRUVANANTHAPURAM: After prolonged delays in reaching a cost-sharing agreement for land acquisition, the state government has announced a special package of Rs 1,629 crore for the construction of the Vizhinjam to Navaikulam Outer Ring Road in the state capital.
The ambitious project implemented as part of Capital Region Development Programme II (CRDP), is crucial for the upcoming Vizhinjam port project and for facilitating smoother port-bound transportation in the future.
Public Works Department (PWD) Minister P A Mohammad Riyas, in a release issued here, said that the cabinet approval would expedite the project and land acquisition process. The cabinet, which met here on Wednesday, announced the state’s share for executing the long-pending ORR project, which is expected to give a major boost to infrastructure development in the state capital.
The cabinet had also decided to allocate state funds for the construction of the Outer Ring Road.
A package worth Rs 1,629.24 crore has been approved for the project and the state has decided to cover 50 percent of the land acquisition costs, amounting to Rs 930.41 crore through Kerala Infrastructure Investment Fund Board (KIIFB). The state will also bear the cost of Rs 477.33 crore for the construction of service roads over a period of five years. Additionally, the state has also decided to waive Rs 210.63 crore in Goods and Services Tax (GST) and Rs 10.87 crore in royalty.
The project envisages the construction of a four-lane road and service roads over a distance of 62.7 km from Vizhinjam to Navaikulam. Around 281.8 hectares will be acquired to facilitate the project, which was conceptualised in 2018 during the term of the previous LDF government.
Though the National Highways Authority of India (NHA) was roped in for the execution of the project, the Centre insisted on state participation in the project.
Waiver for greenfield
Last month, the cabinet also decided to waive GST and royalty shares amounting to D317.35 crore for the Kollam-Chenkotta Greenfield construction.