'Seek GBS hike so that projects don't suffer'

Panel feels reduction in allocation will deter Road & Transport Ministry in taking up new projects/schemes envisaged for 12th plan period

A Parliamentary panel has asked the Road Transport Ministry to seek "enhancement of gross budgetary support" in mid-term review of 12th Plan as a cut in allocation will hit projects.

The Ministry has projected requirement of Rs 2,64,080 crore for the sector during the 12th Five Year Plan (2012-17), while the total gross budgetary support (GBS) outlay provided to it for the period stood at Rs 1,44,769 crore.

"The Committee feels that this reduction in allocation will certainly deter the Ministry in taking up the new projects/schemes envisaged for the Twelfth plan period. Projects like connectivity to 50 minor ports, connectivity to 24 airports ... Have to be dropped by the Ministry for want of funds from government."

The other projects dropped include special packages for Jammu & Kashmir and North Eastern region.

It also objected to only Rs 6,400 crore allotment for works of National Highways (O) against a requirement of Rs 37,540 crore for the Plan period, terming it "unsustainable" considering the length of roads taken up for improvement under the scheme.

"This reduced allocation for NH (O) will affect the NH (O) works adversely and ultimately result in diversion of cess towards development of non-NHDP projects from National Highways Development Project (NHDP)."

Expressing concern, the panel said, "such diversions of cess meant for NHDP projects has been taking place for the last three years which is alarming."

It asked the Ministry to "take up the enhancements of GBS during mid-term plan review so that new projects/schemes apart from on going ones do not suffer."