Kerala Cabinet to Deliver Big Wins: Royalty Waiver & GST Relief for Kochi Bypass, Kollam-Sengottai NH
The proposed 44 km Kochi Bypass, designed to connect Kundannoor on NH 66 Bypass with Angamaly on NH 544, has received a significant boost. The State Cabinet is anticipated to approve waivers on royalty for raw materials and the State Goods and Services Tax (GST) for its construction later this month, sources reveal. The Chief Minister’s Office has forwarded the file concerning these waivers from the Centre to senior officials in the Public Works Department (PWD) as of Thursday.
This development is crucial for the Kollam-Sengottai greenfield NH corridor, which has experienced delays due to procedural issues associated with the waiver of royalty and State GST. The Finance Department is reportedly finalizing the intricacies of the waiver process, which is essential for issuing a Government Order (GO). This order will initiate the acquisition of 287 hectares for the semi-access controlled NH corridor, expected to significantly alleviate congestion on the Aroor-Edappally Bypass and the Edappally-Angamaly stretch of NH 544, which handle approximately one lakh passenger car units daily.
The recent progress follows Union Minister for Road Transport and Highways, Nitin Gadkari, informing Hibi Eden, Ernakulam MP, that the Ministry of Road Transport and Highways (MoRTH) had requested the Kerala government to confirm these exemptions as early as August 2023. Despite the Ministry’s request, confirmation has not yet been received from the State, according to a letter dated June 26, 2024.
Over a year ago, the State had asked MoRTH to exempt it from bearing 25% of the land-acquisition costs for the Kochi Bypass and the Kollam-Sengottai stretch on NH 744. While the State government granted in-principle clearance for the waiver in January, the formal GO is still pending. Concerned about worsening traffic conditions, Hibi Eden urged the State government on July 3 to finalize its decision on the waiver promptly to resolve the impasse and advance the greenfield NH projects.
Original Story https://www.thehindu.com/news/cities/Kochi/kerala-cabinet-likely-to-approve-royalty-waiver-gst-for-kochi-bypass-kollam-sengottai-greenfield-nh/article68367294.ece
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