New fund to finance safety schemes on highways

Sources told The Indian Express that initially, the plan was to create a separate safety reserve for all highway projects that was to be undertaken through the new concession agreement.

This fund was to be utilised to develop, implement and administer a surveillance and safety programme for providing a safe environment on the project highway by the developer.

While there was no disagreement on the safety measures that needed to be followed by the developer, opinion between the Planning Commission and the ministry of surface transport was, however, divided on such multiple safety funds. A decision was then taken to delete this clause from the concession agreement and create a single safety fund that would be utilised for all highway projects.

Sources said this corpus would be utilised for even the existing highway projects such as those on the Golden Quadrilateral that fell in the first phase of National Highway Development Programme. As the decision to create this fund was only taken on Thursday, it was not clear how it would be financed.

Sources said a combination of proceeds from both tolls and the cess on petrol and diesel could be utilised for this purpose. They, however, said this new fund would still be managed by NHAI.