KOCHI: In a move to hasten the pace of national highway projects in the state, the Kerala government is seriously considering various relaxations, including exempting royalty on earth and boulders and reimbursement of the state GST component, after the Union government assured that it would bear the state’s share of 25% of the land-acquisition cost.
Kerala would also have to grant preferential mining rights for stone aggregates and earth for all NH development projects in the state, as NHAI is facing a severe shortage of construction raw materials. Prof K V Thomas, the special representative of the state government in New Delhi, met Chief Minister Pinarayi Vijayan on Thursday in Thiruvananthapuram to discuss the issue.
“The CM was positive to the suggestion of the Centre, and he told me that the matter would be taken up at the chief secretary’s level soon,” Thomas told TNIE.
The suggestion on concessions was made via a letter of Nitin Gadkari, Union Minister for Road Transport and Highways, the CM, dated June 26. Gadkari’s letter was in response to the CM’s letter dated November 21, asking him to waive the 25% land acquisition cost for upcoming NH projects in the state. Considering the CM’s request, Gadkari, in the letter, said he has approved the exemption of sharing 25% of the land cost (Rs 1,092 crore) for two projects, viz., Ernakulam bypass and Kollam-Shenkottai.
“However, you are requested to explore the possibility of exempting royalty on earth/boulders and reimbursement of the state GST component on these projects and also see towards the possibility of granting preferential mining rights for stone aggregates and earth in all NH development projects in Kerala,” Gadkari’s letter said. The Union minister said NHAI has awarded 16 projects worth Rs 47,000 crore that are in the construction stage.
He also thanked the state government for sharing 25% of the land cost, amounting to Rs 5,748 crore, of the ongoing projects in Kerala. Further, the state government has agreed to share 25% of the land cost (Rs 5,600 crore) in the upcoming four greenfield projects. These projects are in an advanced stage of bidding.
Thomas said the Centre’s demand for reimbursement of GST components, and royalty should be studied in detail to understand their impact on finances. “At the same time, we have received the benefit of Rs 1,092 crore on two projects,” he said, adding that the granting of preferential mining rights is not a major demand. “These are not very difficult things. What they are asking for is that they be accorded priority as far as mining is concerned. We already provide such rights to railways,” Prof Thomas pointed out.