Central funds approved for highway infrastructure and tunnel projects
Source:economic-times ↗

Why It Matters
For HPAS Prelims, understanding the geography of Himachal Pradesh (such as Jalori Pass, NH alignments, and major districts) is crucial. Furthermore, awareness of national infrastructure schemes like CRIF and Setu Bandhan, and their specific allocations to the state, links directly to regional economy and geography questions.
Summary
The Centre has allocated significant funds for road infrastructure development in Himachal Pradesh, including ₹25.11 crore for the Banjar-Aut stretch on National Highway 305 and ₹395 crore for NH 303 (Nagrota Bagwan-Ranital). NH 305 currently crosses the high-altitude Jalori Pass, necessitating the proposed ₹1,775 crore Jalori Tunnel for year-round connectivity. Additional funding includes ₹239.45 crore under the Central Road and Infrastructure Fund (CRIF) and ₹3.46 crore under the Setu Bandhan project, reflecting a broader push to improve road networks and economic integration in the hill state.
Key Points
- The Central Government approved ₹25.11 crore to improve the road stretch between Banjar and Aut on National Highway 305 in Himachal Pradesh.
- NH 305 connects Sainj to Luhri and passes through the high-altitude Jalori Pass (10,800 feet), which frequently faces blockages due to snow.
- A detailed project report (DPR) is under preparation for the ₹1,775 crore Jalori Tunnel, which aims to provide all-weather connectivity and bypass the snow-bound pass.
- Further allocations include ₹395 crore for widening National Highway 303 (Nagrota Bagwan to Ranital), ₹239.45 crore for two roads under the Central Road and Infrastructure Fund (CRIF), and ₹3.46 crore under the Setu Bandhan project.
Important Terms
Central Road and Infrastructure Fund (CRIF)
Established in 2000 and renamed in 2018, this fund is managed by the Ministry of Finance. It uses a cess on petrol and diesel to finance critical infrastructure projects like roads, railways, and waterways.
UPSC context
Highly relevant for GS Paper 3 (Economy/Infrastructure). Tests knowledge of infrastructure financing, taxation (cess), and fund administration.
Setu Bandhan project
A scheme by the Ministry of Road Transport & Highways designed to replace railway level crossings with Rail Over Bridges and Rail Under Bridges on state roads, enhancing road safety and connectivity.
UPSC context
Significant for GS Paper 3 (Infrastructure). Highlights government initiatives for road safety, rural connectivity, and transportation network upgrades.
Union Ministry of Road Transport and Highways (MoRTH)
The apex Central Government body tasked with formulating and administering policies for road transport and national highways. It spearheads major developmental initiatives like the Setu Bandhan scheme to boost national connectivity.
UPSC context
Relevant for GS Paper 2 (Governance) and GS Paper 3 (Infrastructure). Tests understanding of ministerial mandates and major connectivity schemes.
Prelims Trap
The Central Road and Infrastructure Fund (CRIF) is administered by the Ministry of Road Transport and Highways.
Although it primarily funds transport projects, the 2018 amendment transferred the administrative control of CRIF to the Ministry of Finance.
Static Concepts Connected
How is the Central Road and Infrastructure Fund (CRIF) structured and managed?
- Funding source: The fund is mobilized through a dedicated cess levied on the excise duty collected on petrol and diesel.
- Expanded mandate: A 2018 amendment expanded its scope beyond roads to include waterways, railway infrastructure, and social infrastructure like educational and medical institutions.
- Nodal ministry: Administrative control of CRIF lies with the Ministry of Finance (Department of Economic Affairs), not the Transport Ministry.
What are the key Himalayan mountain passes located in Himachal Pradesh?
- Jalori Pass: Situated at 10,800 ft, it acts as a critical geographical link between the Kullu and Shimla valleys on NH-305.
- Rohtang Pass: Located on the Pir Panjal Range, it connects the Kullu Valley with the Lahaul and Spiti Valleys.
- Bara-lacha La: A high mountain pass in Zanskar range connecting Lahaul district to Ladakh, situated on the Leh-Manali highway.
- Shipki La: A border pass and border post on the India-China border through which the Sutlej river enters India.
Cross-Topic Patterns
Border & Hill Infrastructure Push
Funding for all-weather tunnels (Jalori, Atal) links internal security logistics (Vibrant Villages Programme) with disaster resilience in fragile Himalayan ecosystems.
Setu Bandhan & PM Gati Shakti
The Setu Bandhan project's focus on eliminating railway crossings synergizes with PM Gati Shakti's multimodal connectivity, reducing logistics costs and transit bottlenecks.
Expect a Match-the-Following question on lesser-known passes (Jalori, Shingo La) or a multi-statement question on CRIF's funding mandate.
Linked PYQs · 4
Linked PYQs · 4
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