In a development that could jeopardise national highway projects in Gujarat, the state government has refused to sign the road support agreement with the central government. The agreement is necessary for timely financial closure and seamless progress of road projects.
Tamil Nadu, West bengal, Delhi and Jammu & Kashmir are among the states that are yet to sign the agreement, which 19 states have already signed.
After assuming office as road transport and highways minister last year, Kamal Nath asked all the states to sign this agreement, which is crucial for achieving the ambitious target of building 20 km roads a day or 35,000 km in the five-year term of the government, ending 2013-14. On February 5, Nath also warned states of cancelling all proposed toll and annuity projects in those states that don’t sign the agreement quickly.
??In response to Nath?s direction, the Gujarat government has refused to sign the pact as it does not want to get into any binding law on the subject. The state has, however, assured of all the necessary support to the Central road projects,?? a senior official in the ministry told FE. Gujarat?s refusal to sign the pact is expected to render Nath?s plans unfulfilled as the state is on the map of some of the major road projects planned by the Centre.
The state support agreement is legally binding on signee states and requires them to provide help to the developer in acquiring land and obtaining requisite clearances. It also restricts the power of states on building competing state roads and imposing local taxes on the use of project highways.
The road support agreement cannot be terminated before all the projects in the state end, a provision that limits the discretion of the state to terminate the accord.
