Thiruvananthapuram: In a move aimed at accelerating the pace of infrastructure development, the Kerala government has decided to exempt its share of GST and royalty charges for National Highways Authority of India (NHAI) projects within the state. The decision is expected to reduce project costs and facilitate faster completion of critical road and highway infrastructure.
This exemption covers the state’s portion of the Goods and Services Tax (GST) as well as royalty charges for construction materials such as rock, sand, and earth used in NHAI’s national highway projects. These costs are often passed on to contractors, indirectly inflating project expenses.
With Kerala being a geographically narrow and densely populated state, land acquisition and construction challenges often delay major road development works. The state government hopes that the tax and royalty exemptions will ease procedural bottlenecks and encourage smoother coordination between NHAI and local authorities.
Officials noted that the decision is aligned with the state’s broader infrastructure policy and is aimed at supporting central projects that can enhance connectivity, reduce traffic congestion, and boost economic growth in Kerala.
NHAI is currently involved in several major highway development projects in Kerala, including stretches of the Mumbai-Kanyakumari corridor and the widening of NH-66. The exemptions are likely to provide financial relief for these undertakings, ensuring timely progress.
