Question : CESS FROM PETROL AND DIESEL



(a) the amount collected from the State of Karnataka under petrol and diesel cess;,

(b) whether any part of this fund has been given to Karnataka;

(c) if so, the details thereof; and

(d) the percentage of the funds collected under the same Head and distributed to the other States?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)

(a): State-wise information of Additional Excise duty colfected on diesel and petrol is not maintained. However the total amount collected from such Additional Excise duty for 2009-10 and 2010-11 is as under:

(Rs. in Crore)

2009-10	2010-11

16591 16979

(b): Yes, Madam.

(c): The Central Road Fund is used by the Ministry of Road Transport and National Highways for development of National Highways Development Projects (NHDP) and development of State roads (other than rural roads). The funds allocated under Central Road Fund (CRF) and Economic Importance (El) and Inter-State Connectivity (ISC) for the State of Karnataka is as under:

(Rs. in Crore)
Financial	Total CRF	CRF Accruals	Total allocation	Allocation under
Year	Accruals	to Karnataka	El & ISC	El & ISC to	Karnataka

2008-09 1671.64 103.82 185.74 20.36

2009-10 1786.56 105.84 198.50 10.27

2010-11 2014.87 118.45 223.88 14.95

As far as development of rural roads is concerned, Pradhan Mantri Gram Sadak Yojana (PMGSY), a centrally sponsored scheme seeks to provide road connectivity in rural areas. Out of the amount collected as additional excise duty on diesel, Rs.0.75 per litre is allocated for PMGSY. The notional allocation of funds based on balance amount of the additional excise duty (after repayment of NABARD loans) to the State of Karnataka during 2010-11 was Rs. 38.59 crore and total funds released to the State of Karnataka during the year 2010-11 was Rs. 927.68 crore.

(d): The revenue from Additional Excise Duty is initially credited to the Consolidated Fund of India and thereafter, Parliament, by appropriation credit such proceeds after adjusting cost of collection to the Central Road Fund (CRF). The CRF is, thereafter, distributed by Planning Commission amongst three Ministries i.e. Ministry of Rural Development, Ministry of Railways and Ministry of Road Transport & Highways in the manner prescribed under the Central Road Fund Act, 2000. The allocation of funds by the Ministry of Road and Transport from this duty to various States and Union Territories under CRF, El and ISC for the last two years is attached as ANNEXURE.