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)
