Tamil Nadu GST Waiver Could Unlock 10.4 km Elevated Corridor on NH5

The National Highways Authority of India (NHAI) has indicated that a 10.4-kilometre elevated corridor from Madhavaram to Nallur toll plaza on National Highway 5 could be revived if the Tamil Nadu government waives its share of the Goods and Services Tax (GST) on construction materials for the project.

According to NHAI sources, approximately 60% of the project cost would go towards materials, which attract GST. The state’s component of GST is 9%, which officials describe as a modest amount. The state government, which supports the project, could contribute by foregoing this tax. Land acquisition requirements are expected to be minimal.

In February this year, during a meeting between the Union Ministry of Road Transport and Highways Secretary and the Tamil Nadu Chief Secretary, NHAI agreed to undertake the elevated corridor project subject to the GST waiver. Modalities for implementation are being finalised, along with an update to the Detailed Project Report (DPR), an official source said.

Local residents have been advocating for the corridor. S. Suresh Babu, president of the Billakuppam Village Residents Welfare Association, said he had written to various authorities, including the President of India, requesting the project. “We hope the project will be taken up shortly and completed on time. The stretch has several traffic junctions that slow down vehicular movement considerably. Local vehicles fight for space among thousands of heavy vehicles on the national highway,” he said.

However, a retired highways department official suggested an alternative approach. Instead of an elevated corridor, he proposed constructing three flyovers at Puzhal (covering Retteri Road), Kavankarai, and Sothupakkam junction (covering Revathy Stores junction). “An elevated corridor would unnecessarily lead to toll plazas, and the cost would be much higher than three flyovers. Since around 60% of vehicles on the road are two-wheelers, an elevated corridor would not help them. Flyovers at these locations would reduce congestion at five junctions,” he explained.

The project remains contingent on the state government’s decision on the GST waiver. No timeline has been announced for a final decision.