Thiruvananthapuram: The state government has decided to forego Rs 741.35 crores by exempting the state share of Goods and services tax (GST) and royalty on construction materials for the construction of Ernakulam bypass and Kollam-Chengotta road.
The move follows a communication from the Union Minister of Road Transport and Highways saying that Kerala was exempted from sharing 25 per cent land acquisition cost for the projects, Ernakulam bypass (NH 544) and Kollam Chengotta road (NH 744). The Minister had requested the Kerala government to explore the exemption of royalty and the state government's share in GST associated with these projects.
As per the estimates submitted by the National Highways Authority of India (NHAI), the state share of GST for Ernakulam bypass was Rs 254.4 crores and for Kollam Chengotta road, it was Rs 173.7 crores. According to the order issued by K Biju, Secretary, PWD, the Kerala government has considered it as a special case and accorded sanction for the exemption of royalty for aggregates required for the construction of the projects.
The government has put forward conditions as part of exemptions which say that the granite products and other rock products excavated during the construction of the Kollam-Chenkota (NH 744) and Ernakulam Bypass (NH 544) and the royalty-free products shall be used only for the construction of the those National Highways.
The joint team of the District Geologist and the Engineer appointed by NHAI shall certify the quantity of products to be exempted from royalty. The share of GST received by the State Government as part of the construction of the Ernakulam Bypass (National Highway 544) and Kollam Chengotta (National Highway 744) projects will be given as a grant to the National Highway Authority of India.
