The Union Minister for Road Transport and Highways recently addressed the Lok Sabha about the Central Road and Infrastructure Fund (CRIF) in the winter parliamentary session of 2019. The CRIF, previously known as the Central Road Fund, was established in 2000 under the Central Road Fund Act of the same year. Funded by a cess on excise duty on petrol and diesel, the administrative control of the CRIF is under the Ministry of Finance’s jurisdiction. It was formerly under the Ministry of Road Transport and Highways’ control.
Establishment and Transformation of the Central Road and Infrastructure Fund
In 2000, the Central Road and Infrastructure Fund (CRIF) was instituted, originally known as the Central Road Fund. Its establishment was dictated by the Central Road Fund Act in the same year. Due to an amendment in 2018, it received its current name. This fund is primarily supported by a cess that applies alongside the excise tax on petrol and diesel sales.
Administrative Control
Previously, the Ministry of Road Transport and Highways had the authority over the Central Road and Infrastructure Fund. However, a shift occurred, and currently, the Ministry of Finance exercises administrative control over the CRIF.
Amendment in 2018 and Expansion of Infrastructure Financing
In 2018, the Central Road Fund Act saw an important amendment. It renamed the Central Road Fund to Central Road and Infrastructure Fund (CRIF). A significant change brought about by this amendment was the broadening of the possible uses for the road cess proceeds under CRIF.
This meant that beyond just roads, the cess revenue could now also be used to finance other infrastructure projects. These new areas include waterways and certain segments of railway infrastructure.
Investment in Social Infrastructure
Another noteworthy change stemming from the amendment is the ability to invest in social infrastructure. Proceeds from the road cess under CRIF can now be allocated towards the development of education institutions, medical colleges, and the like.
Important Facts about the Central Road and Infrastructure Fund
| Establishment Year | 2000 |
|---|---|
| Original Name | Central Road Fund |
| Current Name since | 2018 (post amendment) |
| Primary Source of Funding | Cess on excise duty of petrol & diesel sales |
| Administrative Control | Ministry of Finance |
| Prior Administrative Control | Ministry of Road Transport and Highways |
| New Financing Areas | Waterways, Railways, Education Institutions, Medical Colleges |
Source of Information
The information provided in this article about the Central Road and Infrastructure Fund is primarily sourced from the Press Information Bureau (PIB).
Last Modified: February 6, 2024