NEWSLINKS
MILLENNIUM- FEATURES
INDIA & THE W.T.O.
NEW GOVERNMENT
SPECIALS
INTERVIEWS
COMMENTARY
CREDIT POLICY
BUDGET 1999-2000
USEFUL INFO
ARCHIVES
SEARCH REDIFF

Govt mulls Cess Act changes to raise dream highway fund

The ministry of surface transport is moving for a Cabinet clearance to amend the Cess Act to provide for the creation of a dedicated fund to meet the expenses for the prime minister's dream project North-South-East-West superhighways.

The project has now been merged with the golden quadrangle on which work is already in progress to provide four- to six-lane connectivity through roads between the metropolitan cities.

During a review of the National Highway Development Project carried out recently under the chairmanship of K C Pant, deputy chairman of the Planning Commission, it was decided to start work on the segments of the projects which were proposed to be financed by the Asian Development Bank and the World Bank.

The work on the project was in jeopardy following United States' restrictions on India after the Pokhran nuclear blasts.

It was felt at the meeting that grant of international funds for the project, amounting to $ 500 million, was only a matter of time and the project could go ahead as retrospective sanction could be given by the WB and ADB.

The meeting was attended among others by Transport Minister Rajnath Singh, secretary in the Prime Minister's Office N K Singh, Expenditure Secretary C M Vasudev and Dr Ahluwalia.

It was decided that the transport ministry should immediately move to the Cabinet for the approval of National Highway Development Project as a comprehensive integrated project comprising golden quadrilateral and new corridors. It was also decided to approach the Cabinet for expeditious sanction for strengthening the National Highway Authority of India Board.

The transport ministry will also seek clearance of the Cabinet and Public Investment Board for the projects to be taken up in a calender year. As per the proposal, the NHAI Board will clear individual schemes included by the composite project cleared by the PIB.

The provision is being sought to avoid undue delay in the clearance of projects falling under the National Highway Development Project.

In their earlier meetings, the members of the taskforce had observed that piecemeal clearance of the schemes under the project had to be avoided for speedy completion of the projects.

The decisions taken at the review of NHD Project would be taken up shortly by the taskforce on infrastructure which was reconstituted under the chairmanship of K C Pant.

Other members of the taskforce are Finance Minister Yashwant Sinha, Civil Aviation Minister Sharad Yadav and Railway Minister Mamta Banerjee.

The reconstituted taskforce is also to finalise its views on the Integrated Transport Policy and corporatisation of airports.

Earlier, the taskforce constituted a sub-group under the chairmanship of Dr Montek Singh ahluwalia to finalise the draft integrated transport policy which covers areas of surface transport, shipping, aviation and railways.

UNI

Business