Centre to build Ring Road, Bypass projects only with states' share of fund

NEW DELHI: Amid growing demands from states for construction of ring roads and bypasses to decongest national highways in urban areas, the Centre will take up such projects only if state govts contribute a share of the cost, as per the Urban Congestion Policy of the road transport and highways ministry.

In a communication to all states, the ministry said that all projects for urban decongestion of NHs will be fully access-controlled corridors of minimum 4-lane configuration with closed tolling facilities, which would enable the design speed of 100-120 kmph for both freight and passenger vehicles.

To avoid ribbon development (construction along the corridors), 15-meter along these will be notified as “green zone” where construction will be prohibited unless it is required for public transport, public utility infrastructure such as electricity, water or sewerage pipelines or green zone infrastructure.

A minimum of 60/75 meter Right of Way (RoW) will be acquired for these projects, in case of cities with a population of more than five lakh and state capitals, and 45/ 60 meter RoW where population is 1-5 lakh and district headquarters.

The ministry has listed four models for state govts’ contribution for developing such projects — willingness to share 50% of land acquisition cost; a mix of 25% share of land acquisition cost and reimbursement of state share of GST leviable on project and royalty; contribution of land through land pooling, and a mix of reimbursement state share of GST and royalties on minerals and a share of value capture mechanism.

The policy said the share in value capture mechanism will be provided to central govt over 15 years and will be subject to a cap equal to 50% of the total project cost calculated on Net Present Value basis.

“This mechanism shall operate similar to the value capture finance or transit oriented development charges for metro projects by levying charges for change in land use in the development controlled zone, additional stamp duty for transactions in property in the development controlled zone, infrastructure development charges on property development in the development controlled zone or betterment levy, as the case may be, on residential, commercial or industrial development for which permissions are granted by the state govt within an influence belt of two km along either side of the NH bypass or ring road,” the policy said.