NEW DELHI: The cost of toll collection at public funded toll plazas has reduced by Rs 2,062 crores, which is nearly 44 per cent in comparison to previous financial year’s (FY’s) charges.
The ministry of road transport and highways (MoRTH) attributed this savings to various initiatives by the authority such as close monitoring of current contracts, deletion of provision for deemed extension of three months and timely bidding. The cost of toll collection was Rs 4,736 crore in 2023-24 and it came down to Rs 2,674 in 2024-25.
In FY 2023-24, total toll collected by the toll agencies amounted to Rs 27,417 crores, out of which about Rs 22,681 crores were remitted to the National Highways Authority of India (NHAI). In FY 2024-25, the toll agencies collected a total of about Rs 28,823 crores and Rs 26,149 crores were remitted to the authority.
The ‘Cost of Toll Collection’ is the difference between the Toll Fee collected and the amount remitted to NHAI at public funded tolls.
“The savings in cost of toll collection had resulted primarily due to various initiatives taken by NHAI such as close monitoring of current contracts, deletion of provision for deemed extension of 3 months, timely bidding, ensuring the maximum contracts for one-year duration are awarded and Short-term contracts of three months are minimized,” said ministry officials.
In addition, measures were taken to drastically reduce short term three-month contracts, limiting only three premature termination requests during a financial year and restricting the same contractor in the bidding of toll plaza for which he has submitted the premature termination request, they added.
The ministry said that NHAI has been regularly engaging with the ‘All India User Fee Collection Federation’ to address issues and challenges faced by the toll collection agencies to build confidence and increase participation in toll bids.
“Timely release of performance security (cash part) and Bank Guarantees of the toll collection agencies further enhanced their bidding capabilities resulting into higher bids amounts. Apart from this, to avoid any windfall gains to the toll collection agencies, a ‘Windfall Gain’ clause was also introduced in the agreements, under which the contract of the toll collection agency can be terminated if the moving average of toll collection in last 15 days is more than 40 per cent of the remittance paid to NHAI, ”it stated.
The NHAI is entrusted with maintenance, and management of the highways of about 70,000 km length of the total network of 1.50 km. Additionally, NHAI is mandated to collect user fees (tolls) on these highways in accordance with the National Highway Fee (Determination of Rates and Collection) Rules, 2008.
At present, User fee is collected for approximately 45,000 km of NHs and Expressways. There are about 1,200 toll plazas, which are maintained by either the NHAI or concessionaires.
