Central Road Fund Act, 2000 Chapter III - Bare Act

(1) The Central Government shall have the power to administer the Fund and shall--

(a) take such decisions regarding investment on projects of national highways and expressways as it considers necessary;

¹[(b) take such measures as may be necessary to raise funds for the development and maintenance of the national highways and for the development of rural roads.]

(c) allocate and disburse such sums as are considered necessary, to the concerned departments responsible for the development and maintenance of--

(i) national highways;

(ii) rural roads;

(iii) State roads; and

(iv) construction of roads either under or over the railways by means of a bridge and erect suitable safety works at unmanned rail-road level crossings.

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1. Substituted by the Central Road Fund (Amendment) Act, 2007, for the following w.e.f. 21.08.2007:

"(b) take such measures as may be necessary to raise funds for the development and maintenance of the national highways;"

¹ [The Central Government shall be responsible for the --

(i) administration and management of the share of Fund allocated to the development and maintenance of the national highways;

(ii) co-ordination and complete and timely utilisation of all sums allocated out of the Fund;

(iii) sanction of schemes for State roads of inter-State and economic importance in such manner as may be prescribed;

(iv) formulation of criteria on the basis of which the specific projects of State roads of inter-State and economic importance are to be approved and financed out of share of State roads;

(v) release of funds to the States for specific projects and monitoring of such projects and expenditure incurred thereon;

(vi) formulation of the criteria for allocation of the funds for such projects which are required to be implemented by the National Highways Authority of India and also for other projects for the development and maintenance of the national highways;

(vii) allocation of share of funds to each State and Union territory specified in the First Schedule to the Constitution;

(viii) allocation of --

(a) fifty per cent. of the cess on high speed diesel oil for the development of rural roads in such manner as may be prescribed; and

(b) the balance amount of fifty per cent. of cess on high speed diesel oil and the entire cess collected on petrol as follows:--

(i) an amount equal to fifty-seven and one half per cent. of such sum for the development and maintenance of national highways;

(ii) an amount equal to twelve and one half per cent. for the construction of road either under or over the railways by means of a bridge and erection of safety works at unmanned rail-road crossings; and

(iii) the balance thirty per cent. on development and maintenance of roads other than national highways and out of this amount, ten per cent. that is three per cent. of the total share of State roads shall be kept as reserve by the Central Government for allocation to States for implementation of State road schemes of inter-State and economic importance to be approved by the Central Government in terms of clauses (iii) and (iv) of this section.]

² [(2) Notwithstanding anything contained in clause (viii) of sub-section (1), the Central Government shall, with effect from 1st day of March, 2005, allocate fifty paise from the amount of rupee two as amended by sections 119 and 120 of the Finance Act, 2005 as the additional duty of customs and the additional duty of excise on petrol, levied under sub-section (1) of section 103 and sub-section (1) of section 111, as the case may be, of the Finance (No. 2) Act, 1998(21 of 1998) and the additional duty of customs and the additional duty of excise on high speed diesel oil levied under sub-section (1) of section 116 and sub-section (1) of section 133, as the case may be, of the Finance Act, 1999(27 of 1999), exclusively for the development and maintenance of national highways.]

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1. Section 10 numbered as sub-section (1) by the Finance Act, 2005 w.e.f 13.05.2005

2. Inserted by the Finance Act, 2005 w.e.f 13.05.2005

(1) The share of the Fund to he spent on development and maintenance of roads, other than national highways, as specified under sub-clause (b) of clause (viii) of section 10, after deducting the reserve kept by the Central Government for State road schemes of inter-State and economic importance, shall be allocated to various States and Union terri­tories in such manner as may be decided by the Central Government.

¹[Provided that the Central Government may use the share of the Fund under sub-clause (a) of clause (viii) of section 10 for the repayment of any loan taken for the purpose of development of rural roads in any State or Union territory.]

(2) The portion of the Fund allocated for expenditure in the various States and Union territories shall be retained by the Central Government until it is actually required for expenditure.

(3) If in the opinion of the Central Government, the Government of any Stale or the administration of any Union territory has at any time--

(a) failed to take such steps as the Central Government may recommend for the regulation and control of motor vehicles within the State or the Union territory; or

(b) delayed without reasonable cause the application of any portion of the Fund allocated or re-allocated, as the case may be, for expenditure within the State or Union territory,

the Central Government may resume the whole or part of any sums which it may have at that time held for expenditure in that State of the Union territory.

(4) All sums resumed by the Central Government from the account of any State Government or Union territory administration as aforesaid shall be re-allocated between the credit accounts of the defaulting and other State Governments and Union territory administrations in the ratio of the main allocation for the financial year preceding the year in which the re-allocation is made.

(5) The balance to the credit of the Fund in respect of any allocation shall not lapse at the end of the financial year.

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1. Inserted by the Central Road Fund (Amendment) Act, 2007 w.e.f. 21.08.2007.

(1) The Central Government may, by notification in the Official Gazette, made rules for carrying out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:--

(a) specify the projects in respect of which the funds may be disbursed under section 7;

(b) the manner in which the accounts shall be maintained and the annual statement of accounts may be prepared including the profit and loss account and the balance-sheet under sub-section (1) of section 8;

(c) the manner in which the schemes for development and maintenance of State roads of inter-State and economic importance are to be formulated and sanctioned under section 10;

(d) any other matter for which rule is to be made, or may be, prescribed.

Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

With effect from the appointed day the Central Road Fund governed by the Parliamentary Resolution dated the 13th May, 1988 (hereafter referred to in this section as the existing Fund) shall be deemed to be the Fund established under this Act and,--

(a) all schemes relating to development and maintenance of national highways and Slate roads sanctioned under the existing Fund in so far as such schemes are relatable to the schemes under this Act, shall be deemed to be the schemes sanctioned under this Act;

(b) all funds accrued under the existing Fund including assets and liabilities shall be transferred to the Fund established under this Act.

(1) The Central Road Fund Ordinance, 2000 (Ord. 5 of 2000) is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.