Road ministry inks land deal with 20 states

The ministry of road transport and highways has inked state-support pacts on land acquisition for highway construction with 20 states. Also, some six states have evinced interest in signing the agreement with the Central government.

“We have inked the pact with 20 states for right-of-way for highways construction. Six states, namely Delhi, Gujarat, J&K, Meghalaya, Nagaland, and Tamil Nadu have shown interest, but have not yet signed the agreement. West Bengal, Goa, Mizoram, and Puducherry have not responded to the ministry’s proposal to sign such an agreement,” said a ministry official, on condition of anonymity.

The agreement empowers the concessionaire with access to the site and right of way in accordance with the provisions of the respective concession agreements without hindrance from any government agency or person claiming it.

The move comes as a reprieve to surface transport minister Kamal Nath’s Work Plan I for this financial year, envisaging awarding Rs 1,00,000 crore project that face challenges on other fronts, such as, slow bidding for the projects.

With the state support agreement being signed, the ministry’s Work Plan II, that requires investments worth Rs 90,000 crore the next fiscal, will also get a boost.

Empowered group of ministers on roads headed by finance minister Pranab Mukherjee has already assured support for financing of the Work Plan II.

With state commitment on land and financing in place, Work Plan II projects will be feasible since there is no fear of delay and cost over runs. Once a state support pact is signed by the government, it undertakes not to construct any competing road.

Similarly, the state government too, agrees not to construct any additional toll way except as provided in the concession agreements.