RGICS LEGISLATIVE BRIEF -The Central Road Fund (Amendment) Bill, 2017

The Central Road Fund (Amendment) Bill, 2017, aims to divert 2.5% of the cess collected on petrol and diesel to fund the development and maintenance of National Waterways. While the government hopes this will boost affordable, eco-friendly transport and create jobs, critics are raising red flags about environmental damage, poor consultation with local communities, and potential harm to India’s federal structure.

The Central Road Fund (Amendment) Bill, 2017, proposes expanding the use of funds collected under the Central Road Fund Act, 2000, to support National Waterways. The plan is ambitious: allocate 2.5% of the cess collected from high-speed diesel and petrol (around ₹2,000 crores annually) to build and maintain waterways across the country. The government claims this will not only cut transport costs and pollution but also generate nearly 1.8 lakh jobs over the next five years.

But there’s a catch. Environmentalists are worried about the potential damage caused by large-scale dredging and building barrages along major rivers like the Ganga. They argue this could destroy the river’s natural ability to purify itself and threaten endangered species like the Gangetic River Dolphin. Concerns are also being raised about the lack of consultation with local communities, many of whom depend on these waterways for their livelihood.

There’s more: Critics say the Bill centralizes power by moving control of funds and waterways from states to the Centre. This could weaken federalism, disrupt local economies, and create conflicts between states over water-sharing arrangements.

While the government is pushing the Bill as a game-changer for transportation and economic growth, the lack of proper environmental assessments and stakeholder engagement could turn it into a recipe for disaster. A balanced approach that addresses these concerns is essential before moving forward.

Keywords:  Central Road Fund (CRF),  National Waterways, Dredging, Federalism, Environmental Impact, Stakeholder Consultation, Biodiversity, River Ganga, Private Sector Investment, Infrastructure Development