KOCHI: The Union Budget, presented by Finance Minister Nirmala Sitharaman on Saturday, has given a big push to the core sector such as roads, national gas grid, agri-warehousing, etc. A total of Rs 1 lakh crore has been set apart for the infra push. But, is Kerala equipped to cash in on the initiative by procuring its share of investments?
Though there have been instances where the work on key infrastructure projects in the state got stalled due to violent protests by the activists and so-called environmentalists, the last couple of years saw many of the projects coming back on track, thanks to the tough stance taken by the government. But the price paid by the state due to the violent agitations and hassles in land acquisition is huge. Consider this: Indian Oil Corporation’s (IOC) LPG terminal at Puthuvype, which was to be completed in February 2018, will now get over only in September 2021. The 504-km GAIL pipeline, which was to be completed in December 2013, is now set for commissioning in March — nearly eight years behind the original schedule.
The cost overrun for the IOC terminal is about Rs 300 crore as the Puthuvype terminal cost is expected to shoot up from Rs 700 crore to Rs 1,000 crore. For the GAIL pipeline, the cost increased by a whopping Rs 1,288 crore — from Rs 1,746 crore as per the original plan — to `3,024 crore now. Similarly, work on several crucial NH stretches faced violent protests, forcing the government to delay the works. G Vijayaraghavan, a former Planning Board member, reckons Kerala can claim its rightful share in many projects outlined in the Union Budget if it sits down and restructures its projects. For instance, the budget proposes to expand the national gas grid from the present 16,200 km to 27,000 km. “If we carefully structure it, we can link Kochi with Trivandrum in the national gas grid, from where it connects to Tirunelveli and other southern districts of TN,” he said.
Kerala can also capitalise on the accelerated development of highways proposed in the budget. The plan includes development of the 2,500 km access control highways, 9,000 km economic corridors, 2,000 km coastal and land port roads and 2,000 km strategic highways. Vijayaraghavan said Kerala can easily corner its share for the coastal land and land port roads. City gas project where households received piped gas can be extended to Alappuzha, Kollam, Attingal and Thiruvananthapuram, he said.
Tony Mathew, GM (construction), GAIL, said there has been a significant improvement in the business environment in the state. “Now, projects are not stalled by every Tom, Dick, and Harry. For our Gail pipeline stretch alone, there were even instances of MPs staging protest. But the government has adopted a strong stand, which is helping the key projects to come back on track,” he added. Meanwhile, Rajesh Kumar Singh, principal secretary, PWD, said all the NH-66 projects in Kerala are proceeding as per plan.
There are massive funds for the taking for right projects in the budget. But the question is whether the state, known for its militant trade unions and activist environmentalists, will chart a new path to provide basic infrastructure opportunities to its people.
PROJECT COST OVERRUN
Rs 300 cr IOC LPG terminal, for which the schedule had to be shifted from Feb 2018 to Sept 2021
Rs 1,288 cr GAIL pipeline, for which the schedule was shifted from 2013 to March 2020