Tuesday, October 09, 2007

The State of Kerala's Highways

Route: Kattipuram – Edappal – Kunnamkulam – Guruvayur (~40km)

A steady drizzle greeted us when we disembarked at Kattipuram. Between the five of us, we had as many pieces of luggage, one umbrella and not the slightest idea of where the exit was. Luckily, the only other person on the platform happened to be a lady in a blue sari, holding flags and a signal beacon. Soon after she waved off the train, this railway official not only helped us reach the platform but also summoned a taxi to take us to Guruvayur (40km, Rs. 520)

It was an interesting drive from Kattipuram to Guruvayur. The driver, Ravi (098.955.64524), went blazing into the dark night, one hand on the wheel and the other holding a mobile into which he updated his friends on the amby’s latest coordinates.

The roads were not as bad as NH-17 but we wondered aloud about the variations – why were some stretches so terrible? Why did some stretches spilt into two levels separated by a wicker fence? Curious passengers were just what the doctor ordered for Ravi. For the rest of the journey he was telling us about the hazards of corruption, politics, mismanagement and road engineering in Kerala.

A Malaysian company had abandoned the Kattipuram-Guruvayur road construction after its representative committed suicide over non-payment of dues. The PWD had refused to pay because the road had not been completed within the contract period. Why? – because water distribution pipes had been laid alongside the single-lane roads and relocating these pipes required the cooperation of another government department – the Kerala Water Works, which did not have the money or the resources to do the job.

Soon after the suicide, PWD contracted a local company to finish the job for Rs. 76 lakhs. The job was completed “as usual” and when the rains arrived, the roads promptly got washed away.

That was Ravi’s version. What was the real story? Here is some more information from Abhishek.

This road was a part of the Rs 16.32 billion Kerala State Transport Project (KSTP), inked in 2002. Out of this, Rs 3.88 billion was funded by the state and the rest came from the World Bank. The work started in April 2003 and was supposed to be completed by April 2006. But, the project, which was to be completed in four phases, had come to a standstill in the first phase itself, with only 30 per cent of the work completed. Time and cost overruns had spiked the state's share to over Rs 2,000 crore.

The KSTP project was conceived in 2002 in the midst of a fiscal and infrastructure crisis in Kerala. Motor vehicle traffic on Kerala's roads had been rising annually by 13% since 1990. However, 70% of the State Highway roads remained single-lane (3.8 meters wide) roads and the rest were merely dual-lane roads (7.0m) with limited shoulder space.

WB agreed to lend GOK a loan of $255 million with the understanding that GOK would contribute around $81 million on its own.


The Kattipuram-Guruvayur road was part a 127km section contracted to PATI-BEL JV for Rs. 213 Crores (Rs.1.7 Cr / Km). PATI Bel is a joint venture between PATI of Malaysia and Bhageeratha Constructions, Kerala. The departed soul - Lee See Ben, was the chief project manager of this project.


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Interesting points:

  • Maintenance: Less than 70% of Kerala road network's annual maintenance needs, which are estimated at $50 million, are met by the PWD's slim budget
  • Accident Rates: Kerala is also infamous for one of the highest accident rates of any state in India at 2,500 deaths annually. Loss of life and property cause an estimated loss of $100-200 million per year, or the equivalent of 1-2% of Kerala's annual GDP
  • Highly indebted State Govt.: For the past decade or so, Kerala's government expenditure had outstripped its revenue both in absolute size and growth. While total revenue grew annually during 1993 -2002 at 11%, total expenditure grew by 13%, taking Kerala's fiscal deficit from 1.4% of GDP in 1993 to 4.5% of GDP in 2002. Faced with an over-stretched revenue base, the government took on additional debt to finance this deficit. But, at a debt/GDSP ratio of 32%, Kerala's debt burden was considerably higher than all of the southern states (AP, TN and K) as well as the Indian average of 24%. On a per capita basis, Kerala carried Rs. 7,414 of debt, placing it in significantly more danger than the next worst southern state, AP, at Rs. 4,724 and the Indian average at Rs. 4,996.

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