Cost sharing row may hit Angamaly-Kundannoor road project of Kerala

In the current situation, the state government will be forced to shell out nearly Rs 500 crore of the total land acquisition cost of over Rs 2,000 crore.
For representational purposes
For representational purposes

KOCHI: Construction of the proposed greenfield highway between Angamaly and Kundannoor seems to have hit a major roadblock. The much-hyped proposal, designed to decongest NH 544, may be called into question with the Centre asking the state to bear 25% of the land acquisition cost.

In the current situation, the state government will be forced to shell out nearly Rs 500 crore of the total land acquisition cost of over Rs 2,000 crore. However, sources with the state government say the Centre’s stand to seek funds for the project is bizarre.

“The Centre has asked the state to bear 25% of the land acquisition cost. Since the Centre had almost dropped NH 66 widening, the state government decided to bear 25% of the land acquisition cost to make that project a reality. The state government is handing over all the rights to the land to the Centre. There seems to be an agenda to delay the project,” said a source with the government.

The move comes at a time when stakeholders are still awaiting publication of the 3A notification (power to acquire land under the National Highways Act, 1956) for acquiring land. But it is learnt that the member secretary has delayed approving the notification to force the state government to accept the proposal to bear the cost of land acquisition.

“As per the Centre’s proposal, there was no discussion to share the land acquisition cost. The move comes at a time when it is about to publish the 3A notification. As of now, other projects, including the widening of NH 544 from Thrissur to Angamaly, the Thiruvananthapuram-Angamaly project, and the Kochi-Theni highway, are under consideration. How can a cash-strapped state government pump in such a huge amount for the project? The move will certainly put the much-hyped project on hold,” said the source.
Meanwhile, an NHAI official said the 3A notification will be issued once the state government approves the Centre’s proposal. 

“The state government should provide a supplementary agreement to bear the acquisition cost. The state government had agreed to bear the cost of NH 966 and NH 66. Even in the project proposal, NHAI stated that the state should bear 25% of the cost of land acquisition. The project would hit a roadblock if the state was not ready to bear the cost,” the NHAI source said.

However, Industries Minister P Rajeeve said the state government decided to bear the cost of the NH 66 project land acquisition after it was delayed for years. 

“In other states, the NHAI itself bears land acquisition costs. Moreover, they are entitled to collect toll on the road. Discussions are ongoing with the Centre to bear the total project cost,” said the minister.

Project at a glance
The Angamaly-Kundannoor greenfield highway runs parallel to NH 544 and is proposed to decongest the national highway. The project, expected to cost Rs 4,000 crore, including over Rs 2,000 crore for land acquisition, will pass through 17 villages in the district.

Around 280 hectares of land will have to be acquired along the 47.4-km stretch of the project, which will start from Karayamparambu near Angamaly. The NHAI approved the alignment of the stretch prepared by Hyderabad-based STUP Consultancy. However, even after submitting the documents to the revenue department, the Centre is yet to publish the 3A notification.

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