THE CENTRAL ROAD FUND ACT, 2000


Published: 2000-12-27

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THE CENTRAL ROAD FUND ACT, 2000
ACT NO. 54 OF 2000
[27th December, 2000.]


An Act to give statutory status to the existing Central Road Fund

governed by the Resolution of Parliament passed in 1988, for

development and maintenance of national highways and improvement of

safety at railway crossings, and for these purposes to lev and collect

by way of cess, a duty of excise and duty of customs on motor spirit

commonly known as petrol, high speed diesel oil and for other matters

connected therewith.



BE it enacted by Parliament in the Fifty-first Year of the Republic of

India as follows:-


CHAP
PRELIMINARY


CHAPTER I



PRELIMINARY


1.
Short title and commencement.


1. Short title and commencement.-(1) This Act may be called the

Central Road Fund Act, 2000.



(2) It extends to the whole of India.



(3) Save as otherwise provided in this Act, it shall be deemed to have

come into force on the 1st day of November, 2000.


2.
Definitions.


2. Definitions.-In this Act, unless the context otherwise requires,-



(a) "appointed day" means the date on which the Fund is established

under sub-section (1) of section 6;



(b) "cess" means a duty in the nature of duty of excise and customs,

imposed and collected on motor spirit commonly known as petrol and

high speed diesel oil for the purposes of this Act;



(c) "Fund" means the Central Road Fund established under sub-section

(1) of section 6;



(d) "national highways" means the highways specified in the Schedule

to the National Highways Act, 1956 (48 of 1956) or any other highway

declared as national highway under sub-section (2) of section 2 of the

said Act;



(e) "National Highways Authority of India" means an authority

constituted under sub-section (1) of section 3 of the National

Highways Authority of India Act, 1988 (68 of 1988);



(f) "prescribed" means prescribed by rules made under this Act.


CHAP
CENTRAL ROAD FUND


CHAPTER II



CENTRAL ROAD FUND


3.
Levy and collection of cess.


3. Levy and collection of cess.-(1) With effect from such date as the

Central Government may, by notification in the Official Gazette,

specify, there shall be levied and collected, as a cess, a duty of

excise and customs for the purposes of this Act, o every item

specified in column (2) of the Schedule, which is produced in or

imported into India and-



(a) removed from a refinery or a factory or an outlet; or



(b) transferred by the person, by whom such item is produced or

imported, to another person, at such rates not exceeding the rate set

forth in the corresponding entry in column (3) of the Schedule, as the

Central Government may, by notification in the Official Gazette,

specify:



Provided that until the Central Government specifies by such

notification the rate of the cess in respect of petrol and high speed

diesel oil (being items specified in the Schedule), the cess on petrol

and high speed diesel oil under this sub-section sha l be levied and

collected at the rate of rupee one per litre:



Provided further that 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 1988) and the a ditional 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)

shall be deemed to be a cess fo the purposes of this Act from the date

of its levy and the proceeds thereof shall be credited to the Fund.



(2) Every cess leviable under sub-section (1) on any item shall be

payable by the person by whom such item is produced, and in the case

of imports, the cess shall be imposed and collected on items so

imported and specified in the Schedule.



(3) The cess leviable under sub-section (1) on the items specified in

the Schedule shall be in addition to any cess or duty leviable on

those items under any other law for the time being in force.



(4) The provisions of the Central Excise Act, 1944 (1 of 1944) and the

rules made thereunder and the provisions of the Customs Act, 1962 (52

of 1962) and the rules made thereunder, as the case may be, including

those relating to refunds and exempti ns from duties shall, as far as

may be, apply in relation to the levy and collection of cess leviable

under this section and for this purpose, the provisions of the Central

Excise Act, 1944 and of the Customs Act, 1962, as the case may be,

shall have eff ct as if the aforesaid Acts provided for the levy of

cess on all items specified in the Schedule.


4.
Creditin of cess to Consolidated Fund of India.


4. Crediting of cess to Consolidated Fund of India.-The proceeds of

the cess levied under section 3 shall first be credited to the

Consolidated Fund of India, and the Central Government may, if

Parliament by appropriation made by law in this behalf so pr vides,

credit such proceeds to the Fund from time to time, after deducting

the expenses of collection, for being utilised exclusively for the

purposes of this Act.


5.
Grants and loans by the Central Government.


5. Grants and loans by the Central Government.-The Central Government

may, after due appropriation made by Parliament by law in this behalf,

credit by way of grants or loans such sums of money as the Central

Government may consider necessary in the Fund.


6.
Establishment of Central Road Fund.


6. Establishment of Central Road Fund.-(1) With effect from such date

as the Central Government may, by notification in the Official

Gazette, appoint in this behalf, there shall be established for the

purposes of this Act, a Fund to be called as the "C ntral Road Fund".



(2) The Fund shall be under the control of the Central Government and

there shall be credited thereto-



(a) any sums of money paid under section 4 or section 5;



(b) unspent part of the cess, being already levied for the purposes of

the development and maintenance of national highways;



(c) the sums, if any, realised by the Central Government in carrying

out its functions or in the administration of this Act;



(d) any fund provided by the Central Government for the development

and maintenance of State roads.



(3) The balance to the credit of the Fund shall not lapse at the end

of the financial year.


7.
Utilisation of the Fund.


7. Utilisation of the Fund.-The Fund shall be utilised for the-



(i) development and maintenance of national highways;



(ii) development of the rural roads;



(iii) development and maintenance of other State roads including roads

of inter-State and economic importance;



(iv) construction of roads either under or over the railways by means

of a bridge and erection of safety works at unmanned rail-road

crossings; and



(v) disbursement in respect of such projects as may be prescribed.


8.
Accounts and audit.


8. Accounts and audit.-(1) The concerned departments of the Central

Government shall maintain proper accounts and other relevant records

and prepare an annual statement of accounts, including the profit and

loss account and the balance-sheet in respect of allocations of their

shares of fund in such form, as may be prescribed by the Central

Government in consultation with the Comptroller and Auditor-General of

India.



(2) The accounts of the Fund shall be audited by the Comptroller and

Auditor-General of India at such intervals as may be specified by him.


CHAP
MANAGEMENT OF CENTRAL ROAD FUND


CHAPTER III



MANAGEMENT OF CENTRAL ROAD FUND


9.
Powers of Central Government to administer the Fund.


9. Powers of Central Government to administer the Fund.-(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;



(b) take such measures as may be necessary to raise funds for the

development and maintenance of the national highways;



(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.


10.
Functions of the Central Government.


10. Functions of the Central Government.-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 fo 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.


11.
Administration of States' share of the Fund.


11. Administration of States' share of the Fund.-(1) The share of the

Fund to be 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 ke t 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.



(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

State 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 or 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 ad inistrations 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.


12.
Power to make rules.


12. Power to make rules.-(1) The Central Government may, by

notification in the Official Gazette, make 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.


13.
Rules made under this Act to be laid before Parliament.


13. Rules made under this Act to be laid before Parliament.-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 compris d 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 th 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.


14.
Provisions relating to existing Central road Fund.


14. Provisions relating to existing Central road Fund.-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 State 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.


15.
Repeal and saving.


15. Repeal and saving.(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.


SCHE
(See section 3)

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