The controversy over the “exclusion” of Public Works Minister Muhammad Riyas from the inauguration of the National Highway (NH) 66 development projects attended by Prime Minister Narendra Modi in Kochi has once again turned the spotlight on Kerala’s claim over the cost of land acquisition it bears for the major infrastructure initiative.
Kerala has paid ₹5,580.74 crore as land acquisition cost for the widening of NH 66. This amount was also mentioned by Union Road Transport and Highways Minister Nitin Gadkari in the Rajya Sabha in response to a question on states’ contribution to NH development.
Further, the Kerala government has on several occasions requested the Center to be allowed additional borrowing of ₹6,000 crore above the net borrowing ceiling to meet 25% of the cost of land acquisition for NH construction.
In December 2024, Finance Minister KN Balagopal, in a meeting with Union Finance Nirmala Sitharaman, said that the sanctioned amount for the purpose was ₹6,769 crore and that the state had already spent around ₹5,580 crore. “Reducing this amount from the annual borrowing limits is a disincentive for the state to support large capital projects and is against the Union Government’s policy of supporting capital expenditure by states. This kind of expenditure might not be done by other states,” said Mr. Balagopal. The LDF government recently reiterated its demand as part of its wish list for the Union Budget 2026-27.
The issue was also found in Mr. Balagopal’s State Budget 2026-27 speech on January 29. In the budget speech, it was stated that Kerala is “the first government in India to pay ₹5,580 crore as 25% of the land acquisition cost for the National Highway.” As such, the National Highway “is a proud symbol of the will, development vision and administrative excellence of the Pinarayi Vijayan government,” it said.
Published – 11 March 2026 23:16 IST
