NEW DELHI DEC 27: The sub-group of the Infrastructure Task Force headed by the Deputy Chairman of the Planning Commission, K C Pant, has cleared the modalities of creating a dedicated fund for road development. The matter is now likely to be sent to the Cabinet for its approval next week.As is known, the Government in its Budget this year had levied a cess of Rs 1 on petrol for development of roads. However, a dedicated fund, where the money thus collected would be put, has not been created as yet. The Finance Minister, Yashwant Sinha, had said at the Economic Editors' Conference last month that despite the delay in the creation of fund, the Government would give whatever money was required for the purpose. The money collected thus far has gone to the Consolidated Fund of India. As to the delay with regard to the creation of the fund, Sinha had said that parliamentary approval was required for it. Now that the Cabinet note has been prepared, once the Cabinet approves it, the Government will have to placethe Bill in Parliament during the Budget session. Alternatively, it can also promulgate an Ordinance.The modalities regarding the creation of the fund was cleared at the meeting of the sub-group on December 23. Apart from K C Pant, it was attended by the Surface Transport Minister, Rajnath Singh, Expenditure Secretary C M Vasudev, Secretary in the Prime Minister's Office N K Singh, Planning Commission Member Montek Singh Ahluwalia, Chairman of the National Highway Authority of India (NHAI) and Secretary of Surface Transport. Once the cess is created, whatever money comes through the cess on petrol will go into the fund which will be used for specific purposes of road development and also for unmanned railway crossings.
