Andhra Pradesh planning to impose cess on transport fuels

Andhra Pradesh Government is planning to impose cess on transport fuels and charge one per cent fee from successful bidders in road projects.

Updated: Sep 25, 2010, 21:29 PM IST

Hyderabad: The Andhra Pradesh Government is planning to impose cess on transport fuels and charge one per cent fee from successful bidders in road projects to raise
resources for building roads in the state, Aruna Kumari Galla, Minister for Roads and Buildings here on Saturday.

She said the move is to enable the government to meet the fund requirement to the tune of Rs 1.12 lakh crore over a period of ten years-from 2008 to 2018.
"Out of this huge funding requirement, Rs 50,000 crore would be made available through the State Government. The state would need Rs 25,000 crore for up-gradation and around
Rs 37,000 crore for maintenance of roads. To meet this requirement, we are planning to collect one per cent fee from the successful bidders and also impose one per cent extra cess on transport fuels," she said in her inaugural address at a conference on Infrastructure Development organised by the CII and AP Government here.
Talking about the Public Private Partnership in the road sector, Galla urged the industry for greater investments in the road sector. Rajiv Yadav, IAS, Member, National Highways Authority of India (NHAI), in his address, emphasised the need for making
the Public Private partnership projects more acceptable to the general public.

PTI