State Gets Rs 109 Crore From Central Road Fund

Maharashtra has received the largest allocation (Rs 108.80 crore) among the states for development of state roads from Rs 985 crore, accruing to the state governments from the Central Road Fund (CRF) during 2000-01.

Of the allocated Rs 108.80 crore for the fiscal, Rs 36.27 crore has been released to the Maharashtra government, so far, from the money generated from the cess on petrol and diesel, which gets deposited in CRF.

Uttar Pradesh and Andhra Pradesh are next to Maharashtra, with allocations of Rs 81.95 crore and Rs 81.65 crore respectively during the last fiscal. Rajasthan, Gujarat, Tamil Nadu and Madhya Pradesh also figure among the top states getting funds from CRF for upgradation of state roads.

The levy of Re 1 cess per litre of petrol was imposed in June 1998. In March 1999, Re 1 cess per litre of diesel was also imposed for upgradation of roads. The revenue from the auto fuel levy is accrued to the non-lapsable CRF, out of which every year a part goes to the state governments for upgradation of state roads.

Total money coming into CRF stood at Rs 5,590 crore last fiscal, with a provision of Rs 5,962 crore for this financial year (2001-02).

The fund share of individual states is fixed by considering the total fuel consumption (which gets a 60 per cent weightage) and the total area of the state (a weightage of 40 per cent).

Among 29 states and six Union Territories, 15 states account for nearly 85 per cent of allocation.

Interestingly, Delhi, which accounts for only 0.05 per cent of the total area of the country, occupies the 11th position (Rs 31.89 crore) among states in terms of the allocated fund share.

This is largely on account of the huge number of vehicles plying in the Capital, which prop up the fuel consumption figures leading to increased weightage for the state.

Of the total money accruing from the auto fuel levy, 50 per cent from diesel goes for the development of rural roads under the Pradhan Mantri Gram Sadak Yojana, being implemented by the rural development ministry.

Of the balance cess from diesel and the entire petrol levy, 57.5 per cent goes for the development of national highways under NHDP, 12.5 per cent for construction of railway crossings and road overbridges, and the remaining 30 per cent to the state governments for upgradation of state roads.

As against an allocation of Rs 985 crore last fiscal, projects amounting to Rs 1,576.53 crore for states have been approved from CRF up to August, 2001. Despite the allocation, funds utilisation by states for roads upgradation remains a gray area.

Consequently, money released to various states has been much less than the allocated amounts, with further release of funds tied-up with the furnishing of utilisation certificates by the state governments for money already released.