Vizhinjam-Navaikulam Outer Ring Road to change face of capital district; cabinet approves package of 1629 crore

THIRUVANANTHAPURAM: The Rs 1629.24 crore package for the construction of the Vizhinjam-Navaikulam Outer Ring Road, which will help the development of the capital district, has received the approval of the state cabinet. The cabinet meeting on Wednesday approved the Economic Partnership Agreement for this. The draft of the four-party agreement involving KIIFB, the National Highways Authority of India (NHAI), Capital Region Development Project 2 (CRDP) and the Public Works Department (PWD) was approved subject to conditions. This project will change the face of the district.

KIIFB will provide 50% (Rs. 930.41 crore) of the amount required for land acquisition for road construction. The National Highways Authority of India (NHAI) will construct the service roads for Rs 477.33 crore under the Major Infrastructure Development Project. This amount will be given to the authority by the Government of Kerala within 5 years.

• The government will forego Rs 210.63 crore to be received as GST and Rs 10.87 crore to be received as royalty.
• The GST share that will be received by the state as part of the project will be given as a grant to the National Highways Authority of India subject to conditions
• The rock products that will be available during the construction of the road and the products receiving royalty exemption shall be used only for the construction of the outer ring road
• A team consisting of an engineer, appointed by the National Highways Authority of India, and a district geologist should certify the quantity of products to be exempted from royalty.