National Highways Authority of India Act,1988
Act No : 68
Section : SHORT TITLE, EXTENT AND COMMENCEMENT
NATIONAL HIGHWAYS AUTHORITY OF INDIA ACT, 1988
68 of 1988
16th December, 1988
The development and maintenance of national highways is fully financed by the Central Government as this function comes within entry 23 of the Union List of the Seventh Schedule to the Constitution. Further,
S.5of the National Highways Act, 1956 provides that the Central Government may direct that any function in relation to the development or maintenance of national highways shall also be exercisable, among others, by any officer or authority subordinate to the Central Government. Under this provision, the function of execution of the filed activities including survey, investigations and preparation of projects on national highways have been delegated to the respective State Governments;
The Central Government retaining the activities pertaining to planning, approval of design and estimates, monitoring, etc. This system is commonly known as the 'Agency System' since the State Governments are paid 'Agency Charges' incurred by them on works executed on the national highway system.
2. Though the 'Agency System' of execution of national highway works by the Slate Public Works Departments has been functioning for a period of about 40 years, difficulties have been experienced from time to time,
3. Since the Central Government have no direct administrative control over the executing agency, there have been instances when the Central Government had to remain helpless in case a State Government overlooked the acts of omission or commission on the part of its staff engaged in the construction and maintenance of national highways. This has resulted in anomalous situations where the Central Government, being constitutionally responsible for the development and maintenance of national highways had to defend actions of State Governments in various forums, including Parliament. Similarly the Centre generally ha¯no role in fixation and operation of even major contracts arbitration cases, payment of compensation to contractors, etc, over and above the original contract amounts and other items resulting in direct financial commitment of Central funds.
4. Under the circumstances, the only, alternative is for the Centre to take over development and maintenance of the national highway system through the creation of an autonomous National Highways Authority. It is proposed that this Authority should take over, in a phased manner the functions presently being performed by the State Public Works Departments.
5. The main functions of the Authority would be to develop and maintain national highways whose management and operation is vested in the Central Government. Some of the salient features of the Bill are :-
(a) the Authority, which will be a functional body, will consist Of a Chairman and not more than five full time members to be appointed by the Central Government. The Central Government may also appoint not more than four part- time members;
(b) the Central Government is being empowered to vest in, or entrust to, the Authority such national highways or any stretch thereof, as are vested at present in that Government under section 4 of the National Highways Act, 1956;
(c) any land required by the Authority for discharging its functions will be deemed to be land needed for a public purpose and such land may be acquired for the Authority under the provisions of theLand Acquisition Act, 1894or any corresponding law for the time being in force;
(d) the authority will have powers to enter into and perform any contract up to a certain value which will be prescribed by the Central Government.
(e) the Central Government will provide funds to the Authority for the discharge of its functions;
(f) the Authority will be responsible for the development, maintenance and management of the national highways which are vested in it by the Central Government;
(g) the Authority will construct offices, workshops and residential buildings for its employees and construct way- side amenities near the national highways vested in it;
(h) the Authority will, on behalf of the Government, be empowered lo collect fees for services or benefits rendered by it undersection 7 of the National Highways Act, 1956;
(i) for the proper management of highways, the Authority will regulate and control the plying of vehicles on the highways vested in it;
(j) with the approval of the Central Government, the Authority will raise funds through the floating of bonds, issue of debentures, etc.
6. The Bill seeks lo achieve the above objects. -Gaz.of Ind.,4- 1l-88, Pt. II, S.2, Ext. P. 13 (No. 52)[]
An Act to provide for the constitution of an Authority for the development, maintenance and management of national highways and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Thirty-ninth Year of the Republic of India as follows:-
SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT
(1) This Act may be called the National Highways Authority of India Act, 1988.
(2) It extends to the whole- of India.
(3) It shall come into force on such date" as the Central Government may, by notification in the Official Gazette, appoint.
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