Kerala ready to waive royalty on construction material for National Highway development projects

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THIRUVANANTHAPURAM, Kerala: The Government of Kerala has decided to waive Goods and Service Tax (GST) share and royalty on construction materials for the implementation of the upcoming National Highway development projects.

A meeting was held where the Chief Minister of Kerala, Pinarayi Vijayan met with Nitin Gadkari, Minister for Road Transport and Highways, Government of India, and communicated their decision regarding the waiver. The state government earlier requested the central government to waive the proposed 25 per cent state share of land acquisition cost for two of the projects- Ernakulam Bypass and Kollam Shenkottai National Highway.

The centre sought inter-alia certain exemptions from the state government which included state GST and royalty for the construction materials.

The state government had also requested an exemption from the state share of the land acquisition cost of the Outer Ring Road (ORR) project in the state capital Thiruvananthapuram.

The state had earlier agreed to share 50 per cent cost of land acquisition for the ORR project including the 100 per cent land acquisition cost of the service road. The state government informed the Ministry of Highways that it is ready to waive its GST share and royalty on the construction material for the ORR project and that the centre should shoulder the full land acquisition cost for the project.