World Bank, which plans to invest $1 billion a year in India's transport sector, on Friday proposed a separate 'road maintenance fund' through fuel tax and user charges for the development of highways.
"We have been investing about $1 billion per annum in the last two years. We will invest $700 million to $1 billion per annum in the coming years as well," World Bank's transport sector manager (South Asia), Guang Z Chen, told PTI on the sidelines of a seminar in New Delhi.
Slow progress in road projects was one of the reasons why the bank is not keen on increasing its funding significantly.
"There has been progress in the road sector but not as fast as it was expected," Chen said.
He stressed on the user charges for roads, as both the Centre and states, having huge fiscal deficits, were unable to step up investments in this sector.
The funding for road projects had to come from general taxes or specific cess, Chen said, adding "someone has to pay for the development of roads in the country."
In this context, he said, "There should be a road maintenance fund, which could come through fuel tax."
A separate fund was required as the cess on petrol was being used for expansion of highways and not for maintenance, he said.
While stressing on the efficient use of funds raised for the development of highways, the World Bank official said, "More stress should be on maintenance of the roads than on expansion as the cost of maintenance is much higher."
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