Chapter III MANAGEMENT OF CENTRAL ROAD AND INFRASTRUCTURE FUND

The Central Government shall have the power to administer the Fund and shall— (a) take such decisions regarding investment on projects of roads and other infrastructure as it considers necessary;

(1) 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 roads and other infrastructure; (ii) co-ordination and complete and timely utilisation of all sums allocated out of the Fund; (iv) formulation of criteria for allocation of funds for development and maintenance of State road projects including the projects of inter-State and economic importance; (vi) formulation of the criteria for allocation of the funds for development and maintenance of national highways and other infrastructure projects; (2) Notwithstanding anything contained in clause (viii) of sub-section (1), the Central Government shall, with effect from the 1st day of March, 2005, allocate fifty paise from the amount of rupee two as amended by sections 119 and 120 of the Finance Act, 2005 (18 of 2005) as 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 1998) and the additional 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), exclusively for the development and maintenance of national highways.

(1) The share of the Fund to be spent on development and maintenance of State roads, based on the criteria formulated under clause (iv) of sub-section (1) of section 10, shall be allocated in such manner as may be finalised by the Committee referred to in section 7A. (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 administrations 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.

(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 type of 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; (d) any other matter for which rule is to be made, or may be, prescribed.

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 comprised 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 the 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.

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, State roads and other infrastructure 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.

(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.