The Union Government has clarified the current status of the Vizhinjam–Navaikulam Outer Ring Road, a major greenfield highway project intended to reshape connectivity in Kerala. In a formal response provided today (Thursday, August 6), the Ministry of Road Transport and Highways detailed the progress of the technical designs and the various bureaucratic steps still pending.

A revised Detailed Project Report (DPR) has now been completed, reflecting a change in how the road will be be built. Engineers have closely examined previous work on National Highway 66 to identify better ways to address the local terrain. Consequently, the new plan includes more tunnels and viaducts to ensure hill cutting is kept to an absolute minimum.

Funding and environmental clearances remain pending

The decision to fund the project has not yet been finalised. Central authorities are currently weighing several factors, including the expected traffic volume and how the road fits into the broader PM Gati Shakti national infrastructure plan. While the technical aspects are progressing, the environmental clearance process has hit a brief pause.

At a meeting held in mid-July 2026, the Ministry of Environment, Forest and Climate Change reviewed the proposal but decided to defer it. The ministry is awaiting additional information before granting the necessary clearances. This delay adds another layer of uncertainty to a project that many in the region are closely watching.

Compensation rules for 6,500 affected families

Perhaps the most pressing issue for locals is the fate of roughly 6,500 families who have already handed over their land and properties. Many have been facing significant hardship over the past four years while waiting for their compensation. The government explained that the land is being acquired under the National Highways Act, 1956.

While the compensation amount is determined under the 2013 land acquisition law designed to ensure fair compensation, there is a legal condition regarding the timing. According to the government, payments will be released only after the project receives final approval from the competent authority. This means that despite the long wait already endured by affected families, the disbursement of compensation remains tied to the project's final approval.