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Saturday, March 30, 2013

Land acquisition hits NH projects in Bengal, Kerala



NEW DELHI: Kerala and West Bengal, where land acquisition for road widening is a major impediment for highway expansion, are feeling the heat of the National Highways Authority of India (NHAI), which is threatening to abandon projects. The fear stems from the fact that the Authority has already abandoned two projects in Goa on similar ground, a Times of India report said.

"We are facing the worst situation in Kerala and West Bengal. In Kerala, the cost of land acquisition is very high and unviable," said a senior NHAI official. In Bengal, there is a major problem in disbursement of compensation for land acquisition.

An official cited a project in Kerala, where the cost of land acquisition would be 40% higher than the total project cost. Sources said that the Authority has asked the Kerala government to rationalize the land acquisition cost else the project could never take off.

They added that the owners of properties, which are adjacent to the existing highway stretches, want higher compensation. "Compensation for land acquisition at such high value is unacceptable," an official said.

NHAI chairman R P Singh recently wrote a letter to Kerala chief secretary Jose Cyriac, citing his displeasure at the tardy progress in land acquisition for stretches along the NH-17 & 47 from Karnataka/Kerala border, Kannur-Vengalam-Kuttipuram and Thiruvananthapuram-Tamil Nadu border from Kannur to Thiruvananthapuram. He said that NHAI would have no option other than abandoning these projects.

The Authority had awarded these works to concessionaires in 2009 and 2010. NHAI feels that delay in handing over right of way (RoW) to private builders would increase land acquisition cost and in turn escalate the expense for construction.

Concessionaires are disinterested in highway projects since the general public are apathetic to paying toll charges. Highways minister C P Joshi raised this issue when he met Kerala CM Oomen Chandy recently here.

NHAI has written a letter to road transport and highways ministry urging it to push state governments to sign the State Support Agreement (SSA) for smoother execution of projects, and failing so it would pull out.
SSA is an umbrella promise from states to cooperate and facilitate road projects, including allowing concessionaires to collect toll. Uttar Pradesh, Gujarat and Tamil Nadu, however, have still not signed the agreement.

While progress of work is better in Gujarat, highway projects are on slow lane in the other two states, the report further stated quoting the sources.

Haryana, Rajasthan, Bihar, Andhra Pradesh, Uttarakhand, Jammu & Kashmir are all performing well, and Odisha also isn't not too far behind.

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