For, if this is done, a part of the proceeds got from the sale of petrol, would have to be given to the Ministry of Surface Transport. But, currently, the profit the Government earns on selling petrol at high prices is used for two things -- for cross-subsidising other products such as kerosene and for redeeming the oil bonds issued to the petroleum companies for money owed to them. So, if more funds are to be provided to the CRF, this will reduce the funds available for redeeming the oil bonds.

MoST officials, on the other hand, argue that it is impossible tomaintain the roads even at their existing level, given the Rs 20 crore CRF -- the amount which the present consumption of petrol yields. Presently stagnant at 3.5 paise per litre of petrol -- fixed more than two decades ago -- there is an urgent need to enhance the CRF, the officials say.

Despite a 1988 Parliament resolution recommending enhancement of the CRF to five per cent of the basic price of petrol, the MoF has still not given clearance to it. ``In fact, now even diesel has been included along with petrol but the MoF appears to be adamant not to give the additional money for CRF. After all, it will reduce their own kitty,'' an official of the MoST said.

The increase to five per cent of the basic price of petrol and diesel will yield Rs 2,000 crore as against the present Rs 20 crore for the CRF. This is separate from the cess of Rupee one per litre of petrol levied in the ongoing financial year towards the Highway Fund. Expected to yield Rs 790 crore annually, it is to be used exclusively fordevelopment of the National Highways.

The Standing Committee on Transport and Tourism too has repeatedly expressed concern about the MoF not keeping its promise. ``Then finance minister P. Chidambaram had given the assurance in a meeting on December 15, 1997, that the augmented CRF will be provided in the 1998-99 budget, but it wasn't,'' a MoST official said.

Union surface transport minister M. Thambidurai had personally taken up the issue with his MoF counterpart. ``The MoF seems to be backing out of the promise made in front of the Prime Minister and the transport minister. There are over a dozen assurances made in the Parliament,'' the official added.

An official in the MoF said that it was not so easy to clear the enhancement of CRF. ``We have to see the general availability of resources and also consult the Ministry of Petroleum and the Planning Commission. With the CRF getting Rs 2,000 crore, the allocation for some sector or the other will go down,'' he said.

The MoST -- in a letter to the MoFon July 23, 1998 -- countered this by stating that the CRF was a separate entity which came into being through a resolution of Parliament and, like in other countries, was a dedicated fund.

And, if development of roads was left to the budgetary allocation -- Rs 7,800 crore for Ninth Plan -- nothing would get done. Quoting an expert study of the working group for the Ninth Plan, an official said that just to bring the existing network to a serviceable level, Rs 80,000 crore is required. So the CRF could not be included in the budgetary allocation, he said.