3.3.3. Central Road and Infrastructure Fund

Budget 2018 amended the Central Road Fund Act, 2000, and renamed the Central Road Fund (CRF) the Central Road and Infrastructure Fund. The Fund has been created by the central government for the collection of cess on petrol and high speed diesel (HSD) oil. Presently Rs. 8 per liter is collected as cess on petrol and high speed diesel (HSD) oil. Earlier, the fund was distributed solely for the development and maintenance of NHs, state roads, rural roads and for railway over-bridges/under-bridges and other safety features as provided in Central Road Fund Act, 2000. The objective of the amendment is to use proceeds of the road cess under CRIF to finance other infrastructure projects also such as waterways, some portion of the railway infrastructure and even social infrastructure, including education institutions and medical colleges. The government also constituted a ministerial panel headed by the Finance Minister to decide on fund allocation for infrastructure projects from the CRIF.