The Centre would provide a one-time seed capital to each State depending upon vehicle population of a State/UT during the 12th Plan. 50% of the amount collected by way of activities under Motor Vehicles (MV) Act will be credited to this non-lapsable road safety fund, to be used for such area specific road safety activities as approved by State Road Safety Council and District Road Safety Councils. Request of any State to the Centre for providing any assistance for road safety activities will be requested to be vetted by the State Road Safety Council/District Road Safety Council, and duly supported by Road Accident Data Management System (RADMS) data. It is expected that in five years, the Safety Funds of the States will become self-beyond the 12th Plan period Ministry of Road Transport & Highways has also circulated a Questionnaire on 13th April,2012 to all State Governments for them to assess the current status of institutional mechanisms in the State and for the Centre to assist the States in their Action Plans on Road Safety, State Governments are requested to provide details on the same.

As per recommendations in the Sunder Committee report, all States will be required to create a road safety fund for carrying out various activities like procurement and deployment of ambulances and cranes launching road safety awareness campaigns, setting up Road Safety Councils at state and District levels, setting up web based data system on the lines of RADMS, setting up Institute of Driving Training & Research ( IDTRs), Drivers Training Institutes (DTIs) and Information & Communication (I&C) Centres, training in first aid, training of traffic police and Enforcement staff, procuring road safety equipments such as breath analysers interceptors and speed radar guns and providing emergency care to accident victims.

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