Petrol cess aiding road projects: Minister VK Ebrahim Kunju

KOCHI: The one-rupee cess imposed on petrol and diesel per litre in Kerala has turned out to be a boon for many of the pending road projects in the state as the Public Works Department has finalised road projects worth Rs 3,311 crore in the 14 districts. The projects will be completed in two years, PWD minister Ebrahim Kunju told reporters here on Tuesday.

The projects will be implemented on build-operate-transfer basis under the annuity scheme, he said. The cabinet has given its nod to provide Rs 200 crore, comprising 50 per cent of the amount collected from petrol and diesel, to the PWD and this has helped take up the projects, Mr Kunju said. The income from the cess would go up in the coming years he said.   

“It would have taken at least 25 years to complete if these projects were implemented through the normal budgetary allocation.”

The budget allocation for the PWD is Rs 110 crore and on the basis of it, the department could provide a work order for a maximum of Rs 150 crore, he said.

Under the annuity scheme, the cost of the concessionaire would be repaid over a 15-year period, he said.

The assured return for the concessionaire would be in the range of 12 to 14 per cent. The concessionaire for the projects would be selected through a tendering process and the lowest bidder selected, Mr Kunju said.

He also said the state government had approved a proposal to seek assistance of Japanese aid agency JAICA for a Rs 3,706.3-crore project for developing 984 kilometres of roads under the State Road Development Project.

The PWD hopes to receive 80 per cent of the financial assistance from JAICA, he said, and added that the government will soon approach the agency with the proposal.

Under the State Road Development Project, Rs 279 crore has been allocated for undertaking the construction of 106 kilometres of roads as a pilot scheme.