Kerala to contribute Rs 5374 cr for NH development
Thiruvananthapuram: State finance department has decided to provide Rs 5374 crore for acquiring land for national highway development. Kerala Infrastructure Investment Fund Board (KIIFB) will grant the amount to the National Highways Authority. With this, the obstacles for national highway development in the state has been cleared.
The estimated expense for the developmental works for 45m wide and 600km long NH is Rs 44,000 crore. Rs 21,496 crore from the fund is required for land acquisition alone. As the land price in Kerala is multiple times higher than that in other states, the Centre and the National Highways Authority demanded that the state should bear one fourth of the amount.
The finance department accepted this condition and decided to provide Rs 5374 crore through KIIFB. This will be approved in the next meeting of KIIFB Director Board meet and the fund also will be transferred shortly. There are also plans to levy windfall tax from those who obtain unexpectedly large profit through the national highway development.
When the road is developed by acquiring land from the roadside, the places beyond this will be closer to the national highway which in turn will increase their price. A higher tax can be levied for transaction of those lands or any other profitable activities on them. At present, KIIFB provides the fund without any conditions, the finance department informed.