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Road Fund

Recognising the need for mobilising greater non budgetary resources for development and and maintenance of the PWD road network, regulatory and institutional initiatives were undertaken for generating more user charges and mobilising greater private sector involvement in road projects. The Kerala Road Fund was constituted under the Kerala Road Fund Act 2001 which became law on 23rd November 2001. The purpose of the Road Fund is to finance

  • routine recurrent and periodic maintenance of PWD roads.
  • development of existing road network system including upgrading of any road maintained by the PWD
  • construction of new roads wherever necessary
  • such road safety projects as are found essential for safe and smooth traffic.
  • research related to maintenance and development of roads.
  • any cost-sharing, donor-funded project intended for all or any of the purposes mentioned above.

Projects under the Road Fund can be taken up in association with private entrepreneurs or financing institutions on a cost and benefit-sharing basis. Some of the projects envisaged may not be remunerative enough to attract 100% private participation. In such cases some incentives will have to be given in the form of a share of the costs involved.

The Road Fund shall consist of : -

  • all moneys received from the Central Road Fund established under the Central Road Fund Act, 2000
  • the contribution made by the Government
  • all fees, fines and other amount collected by the Government as per the provisions of the Kerala Highway Protection Act, 1999
  • all payments made by the concessionaire as per the concession agreement;
  • all amount standing to the credit of the Bridges Fund established under section 12 of the Kerala Tolls Act, 1976
  • the user fees collected by the Government agency or the statutory body under the Kerala Road Fund act Act
  • grants or loans or advances made by the Government of India or any institution
  • grants or loans or advances made by the Government of Kerala
  • all returns on investments made by the Road Fund Board directly or through a Government agency or statutory body
  • any amount borrowed by the Road Fund Board
  • any other amount authorised for credit to the Fund under the provisions of Road Fund Act or rules made thereunder or any other law for the time being in force.

The Government shall contribute to the Fund every year an amount equal to ten per cent of the tax collected by them in the previous year under the provisions of the Kerala Motor Vehicles Taxation Act, 1976, and the said amount shall be charged on the Consolidated Fund of the State.

The Board shall consist of the following members :--

  • Chief Minister-ex-officio; who shall be the Chairman of the Board
  • Minister in charge of Public Works - ex-officio; who shall be the Vice-Chairman of the Board
  • Minister in charge of Finance - ex-officio
  • Minister in charge of Transport - ex-officio
  • Principal Secretary to Government in charge of Public Works Department - ex-officio; who shall be the Member Secretary of the Board
  • Law Secretary - ex-officio
  • Chief Engineer, Roads and Bridges - ex-officio
  • Three persons nominated by the Government from among the heads of financial institutions engaged in the business of infrastructure, Scheduled Banks or technical or engineering personnel working in National level institutions.
There shall be an executive committee consisting of:-

  • Minister in charge of Public Works (Chairman of the Executive Committee)
  • Principal Secretary to Government in charge of Public Works Department (Vice Chairman of the executive committee)
  • Finance Secretary to Government
  • Law Secretary
  • Chief Engineer, Roads & Bridges
  • Two members nominated by the Board from among the nominated members of the Board.
The Core Road Network study undertaken by RITES, have identified certain road projects which have potential for execution through the BOT route considering the traffic potential, level of investment necessary etc. The Road Fund Board proposes to implement such projects.