Budget 2001: Full Coverage

Mr Sinha made clear the government's preference for the road sectorvis-a-vis the Railways by enhancing the budgetary support for the roadsector by as much as 93 per cent even as he kept the budgetary support forthe Railways at the last year's level of Rs 3,540 crore.

The total Plan outlay for the roads has been kept at Rs 8,727 crore for'01-02 as against Rs 5,248 crore revised estimate for the current year.

Fifty per cent of the diesel cess, amounting to Rs 2,500 crore, has beenearmarked for development of rural roads through the Pradhan Mantri GramSadak Yojana which was launched on December 25, 00.

A Central allocation of Rs 2,500 crore has already been provided for thescheme for the current year.

In his Budget speech, Mr Sinha said, "the key to the government's success inaccelerating the road development programme lies in its bold policy oflevying a cess on petrol and diesel as a user charge for road usage." Thecess has paved the way for integrated road development, including thevillage, district and state roads and the national highways, he said.

The minister noted that resources for Phase I, to be completed by December03, have already been tied up. Work has been allotted for more than 1,500 kmof the Golden Quadrilateral in addition to the completed sections totalling600 km. The remaining portion is expected to be awarded by the middle ofthis year.

Another Rs 962 crore from the cess fund has been made available to statesfor roads.

The total cost of the National Highway Development Project, comprising theGolden Quadrilateral and the North-South East-West corridors, will cost thegovernment a massive Rs 54,000 crore. Of this, the Re 1 cess on petrol anddiesel is planned to bring in Rs 20,000 crore.

The government has last earlier brought in the Central Road Fund Act whereby50 paise money from the diesel cess will go for rural roads. From theremaining 50 paise and Re 1 from petrol cess, 12.5 per cent will go to roadover-bridges and 30 per cent to state roads.