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Thiruvananthapuram ORR Land Costs Surge to Rs 38 Billion

2025-07-11

Thiruvananthapuram, 8 July 2025 – The long-awaited Outer Ring Road (ORR) project in Thiruvananthapuram, connecting Vizhinjam to Navaikulam via Thekkada, is facing significant delays due to escalating land acquisition costs, which have surged from Rs 1,800 crore to Rs 3,800 crore (approx. £358 million).

The new estimate is valid only until August, after which further delays in compensation payments may inflate costs further, warned officials from the National Highways Authority of India (NHAI).

Compensation Delays and Legal Obligations

Under the Right to Fair Compensation and Transparency in Land Acquisition Act, landowners are entitled to 12 per cent annual interest on delayed payments—from the date of land possession until full compensation is made.

The ORR project requires 314 hectares of land across 24 villages. However, progress has been slow, with delays exceeding three years, and many landowners still awaiting compensation.

Although 3D notifications have been issued in 11 villages, acquisition in the remaining areas is still pending.

Urgent Need for Final Clearance

Following a recent review meeting with Union Minister Nitin Gadkari, Kerala’s PWD Minister P. A. Mohammad Riyas announced that the final project clearance is expected by the end of July.

If not resolved quickly, project costs may spiral further, potentially jeopardising the timely execution of this strategic infrastructure corridor.