Government proposes change in norms to free funds for border roads

NEW DELHI: Government is proposing to amend the Central Road Fund (CRF) Act to bring greater clarity regarding the framework for sharing of the fund, which comes from the cess imposed on petrol and diesel. Sources said the objective is to allocate a certain percentage of this fund for building border roads and increase the share for railways.

Shares of CRF goes for developing and maintaining NHs, state roads (particularly those of economic importance and provide inter-state connectivity), rural roads and railway under or over bridges.

Road transport and highways minister Nitin Gadkari has reportedly opposed any amendment in the Act, if such change results in reducing the share of cess that comes for building National Highways. “Since fuel cess is one of the major sources of funding for building NHs, the minister wants that at any cost the interest of highway sector must not be compromised,” a ministry official said.

The highways ministry has prepared an ambitious blueprint to build roads all along the border and coastlines under the Bharat Mala scheme, Char Dham connectivity and expanding about 17,000 km of highways based on the projected increase in flow of fuel cess over the next 8-9 years. The ministry will require at least Rs 3 lakh crore to implement these projects. According to officials, if the current arrangement of Rs 6 cess of fuel continues, it will generate enough funds to meet this requirement.

Atal Bihari Vajpayee government introduced the Re 1 cess on petrol and diesel to give new fillip to highway construction in the country before launching the Golden Quadrilateral. The fund so collected was put aside in the non-lapsable CRF.