Government collects Rs 7511.54 Crores through cess on Petroleum Products for Development of Roads

A sum of Rs. 2.00 per litre is being levied as cess presently in the form of additional excise duty on both petrol and high speed diesel. The proceeds of the cess are first credited to the Consolidated Fund of India and the Central Government by appropriation credit such proceeds to the Central Road Fund (CRF) from time to time, after deducting the expenses of collection.

This information was given by the Minister of State for Shipping, Road Transport and Highways, Shri K.H. Muniyappa in a written reply in the Rajya Sabha today.

The Central Road Fund is utilized for development of National Highways, development of the rural roads, development and maintenance of other state roads including roads of Inter-State and Economic Importance and construction of roads either under or over the railways by means of bridge and erection of safety works at unmanned rail road crossing etc. as per the provisions of Central Road Fund Act, 2000, the Minister informed.

This Act came into force with effect from 1st November, 2000. The implementing Ministries are Ministry of Rural Development, Ministry of Railways, Ministry of Shipping, Road Transport & Highways (Department of Road Transport & Highways).

Shri K.H. Muniyappa also informed that the total amount collected through cess on petrol and high speed diesel upto March 2008 starting from financial year 2000-01 is Rs. 69267.66 crore. The amount of cess collected during 2008-09 (upto September 2008) is Rs. 7511.54 crore, he added.

Source : Press Information Bureau

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