Sound financial state needed for CRIF projects
Source: The Sangai Express

Imphal, October 24 2024: Timely execution and completion of Central Road and Infrastructure Fund (CRIF) will largely depend on the State's financial position as huge chunks of the funds required for implementing CRIF projects must first be borne by the State Government.

Notably, CRIF was set up in 2000 under the Central Road Fund Act 2000 .

CRIF is one of the many sectors which is funded from the Central tax levied on petrol and diesel.

Earlier, CRIF was known as Central Road Fund (CRF) and it was under the Ministry of Road Transport and Highways at that time.

It came under the control of the Ministry of Finance once CRF was re-established as CRIF.

Generally, funds sanctioned for CRIF projects are released in small amounts.

CRIF amounts sanctioned for Manipur annually during the past few years did not cross Rs 15 crore.

In a rare case of exception, around Rs 150 crore was sanctioned last year after intensive lobbying, sources said.

There are specified rules and regulations for sanctioning and utilising CRIF amounts, and these rules and regulations must be complied with to the letter, said the sources.

If roads and bridges must be constructed under CRIF, all the required amounts must be borne by the Government before the amounts are reimbursed by the Centre in instalments, according to the sources.

Out of 119 road projects submitted by the State's BJP Government to the Centre's BJP Government, 57 projects have been approved.

Manipur being a hill State, the bank of sanction ratio has been raised from four to 9.81, said the sources.

The raise in bank of sanction ratio means greater amounts should be sanctioned but its budget allocation has not been increased.

Even though the bank of sanction ratio has been raised to 9.81, the annual budget allocation for CRIF to execute the 57 approved projects has not been changed, said the sources.

Considering the sick financial position of the State Government at present, the Government will certainly face paucity of funds for implementing the 57 approved projects.

The State Government needs to ensure that there is no interruption in fund flow for paying liabilities of contractors, said the sources.

CRIF projects must be completed within 18 months to two years.

Even if a large number of CRIF projects have been approved, the State may face paucity of funds to execute the projects considering its current financial position, said the sources.

Notably, expenditure sanction of just Rs five lakh was incorporated in the State budget against administrative approval of CRIF projects worth Rs 113,16,00,000 .

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