KOCHI : The much-hyped Angamaly-Kundannoor greenfield highway, designed to decongest NH 544, faces the likelihood of being dropped as the state government has yet to take a final call on exempting the project of GST and royalty.
Following a meeting with Union Road Transport Minister Nitin Gadkari, the Centre decided to reduce the state’s share of 25% of the land acquisition cost for the project. This was agreed on the condition the state would waive GST on construction materials and royalty on stone and soil. However, even after Chief Minister Pinarayi Vijayan’s assurance, the finance department is still sitting on the files, said sources.
“If the state government had agreed to the 25% share, it might have been forced to shell out nearly Rs 500 crore of the total land acquisition cost of over Rs 2,000 crore. Following this, the government approached the Centre, seeking further exemption. This resulted in a decision to waive GST and royalties. But even after six months, the government has not been ready to initiate proceedings. They [NHAI] are now planning to drop the project,” a source with the state government said.
The move comes at a time when stakeholders are still awaiting publication of the 3A notification (under the National Highways Act, 1956) to acquire land.
“Normally, the Centre must publish the notification within a month of the state government submitting details. In this case, the member secretary has delayed approving the notification following the delay in providing exemption from GST and royalties,” the source added.
Meanwhile, NHAI sources confirmed that if the state finance department delays the decision further, the project will be scrapped. “The project would proceed if the state government submits the concurrence on time,” said a source.
Project profile
The Angamaly-Kundannoor greenfield highway runs parallel to NH 544 and is proposed to decongest the national highway. The project, expected to cost I4,000 crore, including over I2,000 crore for land acquisition, will pass through 17 villages in the district. Around 280 hectares of land will have to be acquired along the 47.4km stretch of the project, which will start from Karayamparambu near Angamaly. Alignment of the stretch was prepared by Hyderabad-based STUP Consultancy.