(1) For works on State roads other than roads of economic importance and inter-State connectivity-
(a) one third of the allocation for the current year for each State or Union territory, as the case may be, shall be placed at the disposal of the concerned executive agency for utilisation against the sanctioned works and the said amount shall be maintained as a reserve by replenishing the expenditure from subsequent releases:
Provided that the subsequent instalments shall be released on the basis of the progress of works and actual expenditure subject to the condition that the total amount released for any State or Union territory during the year shall not exceed the total allocation for that year in respect of that State or Union territory and the amount which has not been released from allocation of previous years:
Provided further that if in any case, the complaint about the poor quality of roads developed by the State Governments under Central Road Fund is received, the funds under Central Road Fund equal to the amount of sanction of the works against which complaint has been received shall be withheld;
(b) the executive agency shall submit the utilisation certificate in Form-I annexed to these rules and shall also submit quarterly progress report in Form-II annexed to these rules and monthly expenditure report in Form-III annexed to these rules, duly verified by the regional officer appointed by the Central Government for the State or the Union territory, for the amount released, duly considering observation report, if any, from the person appointed under the quality monitoring system.
(2) For roads of economic importance and inter-State connectivity, the direct payment procedure applicable for National Highway works shall be followed.
(3) In all these cases, the overall availability of budget provision shall be the determining factor for allocations and the payments shall be regulated accordingly.
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