Question : ROAD CESS

(a) whether the Union Government is considering to bring two and half lane highways under the toll network;

(b) if so, the details thereof along with the details of Government policy on taxing the road users;

(c) whether it is a fact that Rs. 2 levied on every litre of petrol or diesel goes to the central pool as road cess;

(d) whether the Government has appointed National Transport Development Committee on tolling roads: and

(e) if so, the details of the recommendations made by the aforesaid committee?

THE MINISTER OF STATE [N THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS (SHRI PON. RADHAKRISHNAN)

(a) No, Madam.

(b) Does not arise. However user fee is levied on the stretches of National Highways having two-lanes with paved shoulders and above but below four-lane on which substantial improvement has been made by widening carriageway by three meters or more, at sixty percent of the rate of fee specified under sub-rule (2) of the National Highways Fee (Determination of Rates and Collection) Rules, 2008 as amended.

(c) Yes, Madam.

(d) No, Madam. However a Committee was setup under the purview of Planning Commission namely National Transport Development Policy Committee (NTDPC).

(e) Action taken on the recommendations of the NTDPC on Toll on two-lane road are as under:

The minimum standard of National Highway (NH) has been specified as 2-lane with paved shoulders. It is expected that the minimum level facility shall be available to public without toll. People will not object to tolling when additional facilities are provided/substantial improvement are made. However, tolling is being resorted to in view of the present toll policy. Tolling of two lane with paved shoulders was necessitated due to non- availability of funds for development and maintenance of NHs and can be dispensed with only, if additional budgetary support is made available or cess is increased to compensate loss of toll revenue. Further, in addition to development, resources are also required for maintenance of assets. Present day funding caters to about 40% of the requirement. Therefore, for maintenance of these roads resources are required, perhaps, these stretches can be considered to be tolled on OMT, where in tolling rate will only be 40% of the toll for stretches developed through BOT. This as stated earlier will need additional budgetary support for development of theses stretches.