Kerala Cabinet decides to waive royalty for raw materials, GST for Kochi Bypass project

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Kerala Cabinet decides to waive royalty for raw materials, GST for Kochi Bypass project

44-km greenfield national highway corridor to link Nettoor, south of Kundannoor Junction on the NH bypass, with Karayamparambu located off Angamaly on NH-544

Decks have been cleared for the realisation of the 44-km greenfield national highway corridor (named Kochi Bypass) that the National Highways Authority of India (NHAI) has proposed to link Nettoor, south of Kundannoor Junction on the NH bypass, with Karayamparambu located off Angamaly on NH-544, with the State Cabinet on July 11 deciding to waive the royalty for raw materials and also the State GST for its construction, it is learnt.

Thus, the royalty for quarry materials and mud would be conditionally waived, apart from GST for the project.

Chief Minister Pinarayi Vijayan had earlier this month forwarded the file relating to the Centre’s demand to waive the two components to the Public Works department (PWD). The Cabinet decision will in turn also help realise the Kollam-Sengottai greenfield NH 744 corridor, which too was caught in procedural and other wrangles associated with the waiver of the two components during the past year.

A formal communication on the waiver is expected to reach the NHAI shortly. A Government Order (GO) in this regard is crucial to issue the long-overdue 3(A) notification to begin the process to acquire 287 hectares for the semi-access controlled NH corridor, that would considerably decongest both the Aroor-Edappally bypass and the Edappally-Angamaly stretch of NH 544 which carry approximately one lakh passenger car units (PCUs) daily.

Over a year ago, the State government had requested Ministry of Road Transport and Highways to exempt them from sharing 25% of the land acquisition cost of the Kochi Bypass and the Kollam-Sengottai stretch on NH 744. In return, MoRTH sought a G.O. waiving the two components. Concerned at the State’s delay in deciding the waiver, the NHAI had earlier this year ‘put on hold’ the project.

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