Clearing the way for construction of the Eastern and Western Peripheral Expressways around the capital to divert heavy traffic from the city roads, Delhi Cabinet on Monday approved payment of over Rs 650 crore to neighbouring Haryana and UP as cost of land for the project.
While Delhi Government was to pay Rs 422 crore earlier as land cost for the project which is scheduled to be completed before Commonwealth Games 2010 to be held in New Delhi, now it will make a payment of Rs 653.50 crore.
"Haryana and UP were demanding more money for the land, and after detailed discussions our Cabinet Secretary and Chief Secretary had with the officials of the two states, the Cabinet today sanctioned an amount of over Rs 650 crore as price of land," Chief Minister Sheila Dikshit told reporters after the meeting.
Haryana and UP had been demanding an enhanced payment from Delhi as cost of land owing to escalation in property rates.
While the total cost of the project is estimated at around Rs 4000 crore, the cost of land now stands at Rs 1307 crore, of which as per the arrangement worked out earlier, Delhi has to pay 50 per cent and Haryana and UP 25 per cent each.
Delhi has already made a payment of Rs 387.10 crore of the Rs 653.50 crore to be paid by it as cost of land.
"The expressways will help to divert traffic, especially heavy vehicles, coming from Haryana and UP from Delhi roads," Dikshit said.
With a total length of 260 km, the expressways will be ready in three years time.