Hyderabad: Sources told Deccan Chronicle that a team of World Bank officials, who discussed the issue of Telangana State Road Development Corporation (TSRDC) with roads and buildings minister Tummala Nageshwara Rao and other senior officials of the transport department, raised the issue of Re 1 cess on every litre of petrol and diesel sold in Telangana.
“The World Bank team was very clear that TSRDC should not be solely dependent on the state government for funding and its survival. It should be a financially viable corporation and should have its own steady income formula. This will enable it to not only sustain itself but also repay the loan EMIs to the World Bank and also ensure proper maintenance of roads developed with the bank’s funds,” sources said.
Another reason for the World Bank coming up with the condition of Re 1 tax per litre of fuel is its past experience with the state governments in the country. The Andhra Pradesh Road Development Corporation and RDCs in other states formed in consultation with World Bank are now dependent on the state governments even to pay the salaries of their staff.
When contacted, TS transport department secretary Sunil Sharma confirmed that the Re 1 additional cess on petrol and diesel did come up during discussion with the World Bank team.
“No decision has been taken to levy Re 1 cess on fuel. There are several other ways of making a corporation financially viable such as raising bonds, collecting tolls and diverting that revenue to the corporation,” he said.
