Thiruvananthapuram : The Kerala Infrastructure Investment Fund Board(KIIFB) will bear 25 percent of land acquisition costs towards National Highway Expansion Project in the state.
The first disbursement of Rs 349.7 crore in this regard, was handed over to Principal Secretary of Public Works , in the presence of Chief Minister, Pinarayi Vijayan on Friday .
The cheque will be deposited into a separate PWD account opened at State Bank of India, operated by the Principal Secretary.
Huge land acquisition costs posed major hurdle to highway development in the state.
To resolve the situation, the Union Ministry of Transports and Highways decided to seek 25 percent of the acquisition costs from the state govt.
Following this, the Chief Minister Pinarayi Vijayan held detailed discussions with Union Minister Nitin Gadkari on the issue, in a their meeting held in Delhi.
Pinarayi agreed to the Centre’s proposal of contributing 25 percent of the land costs, given the state’s urgency to have its highway development going.
The state will have to cough up a total Rs 5,374 crore. The Rs 349.7 crore released by KIIFB on Friday, is part of this lump sum.
The payment was made against a tripartite agreement drawn between Union Transport Ministry, the Public Works Department Principal Secretary and KIIFB CEO
